R7C-Amend Agreement w- Strategic Advisory Group For Consulting Services Re- MBCCCOMMISSION 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 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 campus/district in an amount not to exceed $198,835, including all reimbursable expenses, from previously appropriated
funds from FY 21012/2013 Operating Buclget Fund 168 RDA Ci!Y Center Operations.
Key Intended Outcome Supported:
Improve the Convention Center Facility
Supporting Data (Surveys, Environmental Scan, etc.): The Strategic Plan 2011 Update indicates that occupancy at
Miami Beach Convention Center in FY 2010/11 was 54%.
Issue:
I Shall the Mayor and City Commission adopt the Resolution?
Item Summary/Recommendation:
On October 19, 2011, via Resolution No. 2011-27778, the City Commission authorized the Mayor and City Clerk to enter into an
agreement between the City and Strategic Advisory Group (SAG) for services relative to the expansion and enhancement of the
MBCC District, pursuant to Request for Proposals (RFP) No 33-10/11 in an amount not to exceed $175,000, including all
reimbursable expenses.
On January 11, 2012, the City Commission authorized the Administration to issue 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 RFQ). The
RFQ was issued on February 7, 2012.
At the December 12, 2012 City Commission meeting, the Commission accepted the recommendation of the City Manager and
short-listed first ranked Portman CMC and second ranked South Beach ACE to move forward to Phase II ofthe RFQ.
The Administration will require SAG's continued professional industry consulting services for Phase II work, including assistance
with the extensive public master planning process with the community, and the negotiations of the LOis with Portman CMC and
South Beach ACE. SAG, will manage, in conjunction with the City Administration, the Master Planning and LOI Negotiations
process including the following: Project oversight, Managing and maintaining the schedule, Preparing agendas and facilitating
project meetings, Participating in public forums and commission meetings, Drafting and reviewing written correspondence related to
the project, Preparing presentation materials, Facilitating developer discussions, Participating in design review meetings, Answering
developer questions, Drafting the LOt template, Economic impact analysis, Negotiating the LOI, and Reviewing and commenting on
legal documents.
SAG will bill professional fees based on the time spent on the project, multiplied by the hourly billing rates listed in the Contract
Amendment, up to an amount not to exceed $198,835, including all reimbursable expenses (e.g. travel, supplies, etc). SAG
currently anticipates being completed with the scope of services by June 2013.
RECOMMENDATION: Adopt the Resolution.
Advisory Board Recommendation:
Financial Information:
F"ffrs: Amount Account Approved
1 $ 198,835 168-1985-000312 / ~ v oBiv Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
City Manager's Office . S1 n-Offs:
Department Director Assistant City Manager City Manager
M~
MtAMIBEACH
352
AGENDA STEM __.!..R_;_7--:-C-=--
DATE cQ~{p-/3
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Kathie G. Brooks, City Manager /A~ •
DATE: February 6, 2013
SUBJECT: 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 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 CAMPUS/DISTRICT IN AN AMOUNT NOT TO EXCEED
$198,835, INCLUDING ALL REIMBURSABLE EXPENSES, WITH PREVIOUSLY
APPROPRIATED FUNDS FROM FY 2012/2013 OPERATING BUDGET FUND 168
RDA CITY CENTER OPERATIONS.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
FUNDING
Funds are available in Fund 168 RDA City Center Operations, Account Number 168-1985-000312.
BACKGROUND
On October 19, 2011, via Resolution No. 2011-27778, the City Commission authorized the Mayor and
City Clerk to enter into an agreement between the City and Strategic Advisory Group (SAG) for services
relative to the expansion and enhancement of the MBCC District, pursuant to Request for Proposals
(RFP) No 33-10/11 in an amount not to exceed $175,000, including all reimbursable expenses.
SAG, as part of its scope of services, assisted the City in drafting the Request for Qualifications (RFQ)
for the master development of the MBCC District.
On January 11, 2012, the City Commission authorized the Administration to issue 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 RFQ). The RFQ was issued on
February 7, 2012.
The primary objectives of the RFQ are to:
1. Improve the Convention Center (hereinafter also referred to as the MBCC);
2. Facilitate the ability of the MBCC to attract high impact conventions, meetings, and tradeshows in
an increasingly competitive environment; and
3. Redevelop the surrounding area, including transforming the MBCC District into a new vibrant
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SAG MBCC Phase 2 Consulting Services MEMO
February 6, 2013
Page 2 of 5
neighborhood with year-round activities; increasing outdoor public space; creating a walkable
district providing connectivity between the MBCC and Lincoln Road and the City's historical and
cultural district; providing iconic architecture in keeping with the City's history of significant design;
incorporating sustainable (LEED) design principles; while being sensitive to the surrounding
residential neighborhoods (particularly with respect to traffic and scale); and offering optimal
economic and community benefits to the City.
RFQ PHASE I
During Phase I of the RFQ, Proposers were evaluated based on their experience with undertaking
comparable urban mixed-use master development projects of the magnitude contemplated. Similarly,
the Proposers' "Lead Architects" were evaluated on their relevant experience in providing design
services for comparable urban mixed-use master developments.
On the RFQ deadline of April 23, 2012, the City received qualifications packages in response to the RFQ
(the proposals) from eight (8) Proposers, three (3) subsequently withdrew their proposals, leaving the
following five (5) Proposers to evaluate:
• CConnectMB
• Portman CMC
• Rida Development Corporation
• South Beach ACE
• Turnberry Lincoln Village, LLC
On November 20, 2012, the Evaluation Committee convened and heard presentations. The Committee
scored and ranked the Proposers, and recommended to the City Manager to shortlist first-ranked
Portman CMC and second-ranked South Beach ACE to move forward to Phase II of the RFQ. SAG also
recommended to the City Manager to shortlist only the two (2) top-ranked Proposers, Portman CMC and
South Beach ACE.
At the December 12, 2012 City Commission meeting, the Commission accepted the recommendation of
the City Manager and short-listed first ranked Portman CMC and second ranked South Beach ACE to
move forward to Phase II of the RFQ.
RFQ PHASE II
As part of Phase II of the RFQ, Portman CMC and South Beach ACE are required to prepare a detailed
proposal for their proposed development of the MBCC District. This Phase, as part of the preparation of
the detailed proposal, will include what the City Administration expects to be extensive community
involvement to gain input on local needs and concerns. Additional meetings will also be held with the
shortlisted Proposers to gather information on the improvement needs of the MBCC to develop the scope
of services for the MBCC enhancement and expansion. Several community meetings and City
Commission workshops will be held to review each Proposer's Master Plan, prior to final consideration
and selection of the final "Master Developer".
In addition to the Master Plan for the site (which will include respective project renderings, a breakdown
of proposed uses, and square footages of each use), the short-listed Proposers' "detailed proposal" will
also include proposals for enhancing public open spaces, a renovation and expansion plan for the
MBCC, a proposal for a convention center hotel, a phasing and absorption plan, financing plan
(including, at minimum, a 30-year financial pro forma), a preliminary traffic impact analysis, any request
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SAG MBCC Phase 2 Consulting Services MEMO
February 6, 2013
Page 3 of 5
for public assistance, and a summary of projected new City revenues to be generated by the proposed
development, including estimated impacts to the City's tourism economy against baseline criteria.
Concurrent therewith, the City Manager, with SAG's assistance, will negotiate Letters of Intent (LOis)
with the shortlisted Proposers. Some of the items that will be negotiated in the LOI includes the scope of
the renovation and design for the MBCC, the phasing plan, the financing plan, land lease terms (if
required) and other economic impacts, hotel room blocks, and traffic impacts. The negotiated LOI's will
then be presented to the City Commission for consideration and further action.
The Administration will require SAG's continued professional industry consulting services for Phase II
work, including assistance with the extensive public master planning process with the community, and
the negotiations of the LOis with Portman CMC and South Beach ACE.
ANALYSIS
Scope of Work
A copy of the Professional Services Agreement Amendment is attached for your review. Below is a
summary of the scope of services to be performed by SAG during Phase II.
SAG, will manage, in conjunction with the City Administration, the Master Planning and LOI Negotiations
process including the following:
• Project oversight -this includes assisting the City on how to best maximize the City's assets,
informing the City on how to potentially generate maximum private investment, updating the City
on the status of the project, and assisting the City with the resolution of any issues that may arise
as the project progresses.
• Managing and maintaining the schedule-this includes taking the lead role in creating, modifying,
communicating, and administering the attached schedule (Exhibit 1) with both the City team and
the short listed developers. The goal of this process will be to complete a master plan and LOI
from each short listed team by the targeted date.
• Preparing agendas and facilitating project meetings -The attached schedule includes numerous
meetings and work sessions. SAG will be responsible for preparing the agenda for each meeting,
ensuring participants are informed of expectations, and facilitating each meeting as appropriate.
• Participating in public forums and commission meetings. There are four public community
meetings and four City Commission meetings currently planned. It is our goal to create an
environment whereby the community speaks directly to the short-listed development teams, not
an intermediary consultant. Nevertheless, SAG will facilitate the meetings, meet in advance with
leaders to prepare, and ensure the proper presentation materials are prepared.
For the Commission meetings, SAG will assist with drafting briefing information, participate in
Commission member advance briefings, and prepare apple-to-apples comparisons to ensure the
Commission is presented with comparable data for their decision making process.
• Drafting and reviewing written correspondence related to the project -SAG will assist with the
drafting and/or reviewing project information. This will include project update memorandums,
proposal comparisons, and correspondence to the development teams.
• Preparing presentation materials -SAG will prepare presentation materials when required. In
addition, SAG will assist each development team with preparing their materials to ensure each
team presents like data in a similar fashion.
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SAG MBCC Phase 2 Consulting Services MEMO
February 6, 2013
Page 4 of 5
• Facilitating developer discussions -SAG will assist with the numerous meetings, conference
calls, and discussions with the short listed teams to communicate the City's objectives,
deliverable expectations, financing options, master plan issues, etc.
• Participating in design review meetings -SAG will participate and coordinate the planned design
review meetings. Our main role will be to monitor how each team is moving forward and ensure
the Commission, community, convention center, City and other stakeholder issues are being
addressed.
• Answering developer questions -SAG will be the clearinghouse to answer developer questions
as they arise, ensuring the proper team member from the City team is counseled, and that the
answer is communicated.
• Drafting the LOI template -SAG will draft, in conjunction with the City's legal team, a letter of
intent template outlining the broad terms for the proposal. The LOI will address: diagrams and
renderings communicating the vision for the site; square foot program for each component;
phasing plan and project absorption schedule; development cash flows (revenues, expense,
capital, etc.) for each component, with a summary of significant assumptions, demonstrating
financial viability; terms for leasing land for private development; plan for raising capital and
known funding commitments; scope of services and fee for management of the renovation and
expansion of the MBCC and any other public assets requested to be developed; scope of
services and fee for design of the renovation and expansion of the MBCC and any other public
assets requested to be developed; requested role of the City; hotel room-block commitment; and
the plan to involve the community in the refinement of the vision.
• Economic impact-one of the requirements of the RFQ is for each short listed team to provide an
analysis of the economic impact of the proposed master plan, with documentation supporting how
the estimated economic impact was derived. In addition each team must provide a summary of
City revenues generated by the private components of the project over time, including property
taxes, hotel taxes and sales taxes.
SAG will provide guidance to each team on how these analyses are to be completed to enable an
apples-to-apples comparison of the proposals. This will include providing each team with a
common methodology and assumptions for each calculation.
• Negotiating the LOI -SAG will work in concert with the City legal team to negotiate the LOis.
This will entail numerous conference calls and meetings to ensure each proposal addresses all
issues and that each is as favorable to the City as possible.
FEE AND SCHEDULE INFORMATION
The Amendment to SAG's Professional Services Agreement (Attachment A) summarizes the Phase II
Scope of Services and schedule. SAG will bill professional fees based on the time spent on the project,
multiplied by the hourly billing rates listed in the Contract Amendment, up to an amount not to exceed
$198,835, including all reimbursable expenses (e.g. travel, supplies, etc). SAG currently anticipates
being completed with the scope of services by June 2013. In addition, the Administration will also pursue
reimbursement for a portion of SAG's fee for both Phase I and Phase II as provided in the County GO
Bond Agreement for the Convention Center.
SAG's proposed fee is in line with their contracted fees for other projects, including Houston, Washington
DC, and Salt Lake City. SAG's proposed fee for the City of Miami Beach is higher than its contract fee
for Houston, because the Houston project was only for a hotel, and its developer selection and Council
approval was completed in only three (3) months. There were no community meetings in Houston. The
Phase I process for our Convention Center RFQ had a much longer duration for selection of the
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SAG MBCC Phase 2 Consulting Services MEMO
February 6, 2013
Page 5 of 5
shortlisted developers, and Phase II of the RFQ will require several months of community involvement,
and City Commission workshops and individual briefings, prior to selection of the final developer.
Conversely, SAG's fee for its work in Washington DC, while only for a hotel development, is significantly
higher because the process there took place over multiple years, as it was put on hold and then started
again, and the scope of services were also expanded to include land acquisition and assembly, a public
subsidy package that had to be approved by Congress, and construction management. The
Administration believes SAG's proposed fee for the Phase II services are reasonable.
CONCLUSION
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 campus/district in an amount not to exceed $198,835, from previously appropriated funds from
FY 21012/2013 Operating Budget Fund 168 RDA City Center Operations.
T:\AGENDA\2013\2-6-13\SAG MBCC Phase 2 Consulting Services MEMO.doc
357
ATTACHMENT
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Amendment #1
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
January 1, 2013
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
Campus/District.
ADDITIONAL SCOPE OF SERVICES
SAG, will manage, in conjunction with City staff, the Master plan!LOI process outlined in
Exhibit 1. This will include:
• Project oversight -this includes assisting the City on how to best maximize the City's
assets, informing the City on how to potentially generate maximum private investment,
updating the City on the status of the project, and assisting the City with the resolution of
any issues that may arise as the project progresses.
• Managing and maintaining the schedule -this includes taking the lead role in creating,
modifying, communicating, and administering the attached schedule (Exhibit 1) with
both the City team and the short listed developers. The goal of this process will be to
complete a master plan and LOI from each short listed team by the targeted date.
• Preparing agendas and facilitating project meetings -The attached schedule includes
numerous meetings and work sessions. SAG will be responsible for preparing the agenda
for each meeting, ensuring participants are informed of expectations, and facilitating each
meeting as appropriate.
• Participating in public forums and commission meetings. There are four public
community meetings and four City Commission meetings currently planned. It is our
goal to create an environment whereby the community speaks directly to the short-listed
development teams, not an intermediary consultant. Nevertheless, SAG will facilitate the
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358
~tr~~egi,c:AdvisoryGroup
meetings, meet in advance with leaders to prepare, and ensure the proper presentation
materials are prepared.
For the Commission meetings, SAG will assist with drafting briefing information,
participate in Commission member advance briefings, and prepare apple-to-apples
comparisons to ensure the Commission is presented with comparable data for their
decision making process.
• Drafting and reviewing written correspondence related to the project-SAG will assist
with the drafting and/or reviewing project information. This will include project update
memorandums, proposal comparisons, and correspondence to the development teams.
• Preparing presentation materials -SAG will prepare presentation materials when
required. In addition, SAG will assist each development team with preparing their
materials to ensure each team presents like data in a similar fashion.
• Facilitating developer discussions -SAG will assist with the numerous meetings,
conference calls, and discussions with the short listed teams to communicate the City's
objectives, deliverable expectations, financing options, master plan issues, etc.
• Participating in design review meetings -SAG will participate and coordinate the
planned design review meetings. Our main role will be to monitor how each team is
moving forward and ensure the Commission, community, convention center, City and
other stakeholder issues are being addressed.
• Answering developer questions -SAG will be the clearinghouse to answer developer
questions as they arise, ensuring the proper team member from the City team is
counseled, and that the answer is communicated.
• Drafting the LOI template-SAG will draft, in conjunction with the City's legal team, a
letter of intent template outlining the broad terms for the proposal. The LOI will address:
diagrams and renderings communicating the vision for the site; square foot program for
each component; phasing plan and project absorption schedule; development cash flows
(revenues, expense, capital, etc.) for each component, with a summary of significant
assumptions, demonstrating financial viability; terms for leasing land for private
development; plan for raising capital and known funding commitments; scope of services
and fee for management of the renovation and expansion of the MBCC and any other
public assets requested to be developed; scope of services and fee for design of the
renovation and expansion of the MBCC and any other public assets requested to be
developed; requested role of the City; hotel room-block commitment; and the plan to
involve the community in the refinement of the vision.
• Economic impact -one of the requirements of the RFQ is for each short listed team to
provide an analysis of the economic impact of the proposed master plan, with
documentation supporting how the estimated economic impact was derived. In addition
each team must provide a summary of City revenues generated by the private
components of the project over time, including property taxes, hotel taxes and sales taxes.
2
359
$,~rf;tt~gi,c;AdvisoryGroup
SAG will provide guidance to each team on how these analyses are to be completed to
enable an apples~ to-apples comparison of the proposals. This will include providing each
team with a common methodology and assumptions for each calculation.
• Negotiating the LOI-SAG will work in concert with the City legal team to negotiate the
LOis. This will entail numerous conference calls and meetings to ensure each proposal
addresses all issues and that each is as favorable to the City as possible.
ADDITIONAL FEES
SAG will be compensated for fees and expenses through December 31, 2012 under the current
contract.
Exhibit 2 presents an estimate of the hours for each task, fees and expenses beginning January 1,
2013, assuming two firms are shortlisted. Fees and expenses are not to exceed $198,835 during
the term. Fees and expenses will increase if more than two firms are shortlisted or the City
materially alters the schedule in Exhibit 1.
SAG's fees will be based on the time worked on the project multiplied by the hourly rates in
Exhibit 2. Each invoice will include a summary of the tasks completed by day by person.
Travel expenses will be paid in addition to fees. Expenses for airfare, rental car, taxi, hotel and
any third party data will be invoiced based on the actual amount, without markup. Meal receipts
will be provided, and will be invoiced not to exceed the City of Miami Beach's per diem rates
which are currently $22.64 for breakfast, $20.14 for lunch and $36.3 8 for dinner.
Invoices shall be submitted monthly and the City shall pay invoices within 30 days of receipt.
TERM
This agreement shall begin on January 1, 2013 and end on June 30,2013.
* * *
3
360
~tr~t~gi~AdvisoryGroup
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
ATIEST:
By:
City Clerk Mayor
FOR CONSULTANT: STRATEGIC ADVISORY GROUP LLC
ATIEST:
By: ____________________ __
Thomas Reifert, Partner Jeffrey Sachs, Managing Partner
4
361
Jan 8
Jan 9
Jan 17
Jan29
Jan 29 Eve
Feb26
Feb 27
Feb 27 Eve
Feb 28
Feb 27 I 28
Mar26
Mar27
Mar 27 eve
Mar28
April5
April
April26
May 8 eve
May 9 I 10
May 15
!Jtr~t~gj9:AdvisoryGroup
Exhibit 1
Design!LOI Process
CityiSAG/Tishman ·Kick Off Meeting, MBCC Walk· Through
CityiSAGIPortman-Kick Off Meeting, MBCC Walk· Through
City Commissioner Briefings
Tishman and Portman meeting with Convention Center Advisory Board
Publi~: Comrnunity l -Gather initial public input
CityiSAG/Portman -Internal Preliminary Master Plan Review
CityiSAG/Tishman -Internal Preliminary Master Plan Review
Public Communily "'2
• Guiding Principles for Master Plan based on community input
• Master Plan Concept (bubble diagrams)
City Commission Workshop #1
• Guiding Principles for Master Plan based on community input
• Master Plan Concept (bubble diagrams)
City Commissioner Briefings
City/SAG/Portman -Internal Master Plan Review
CityiSAG/Tishman -Internal Master Plan Review
City Commission Workshop #2 & Public Cotnrnunity
• 3D Massing diagrams
City Commissioner Briefings
Initial LOI terms due to the Administration
LOI review and negotiations
Final Masterplan deliverables and LOI due
Public Community Mectmg 114
• Complete Master Plans
City Commissioner Briefings
Special City Cormnission Meeting
• Complete Master Plans
• Proposed LOI Terms
5
362
Str~t~gi~AdvisoryGroup
May 22 I 23 City Commission Briefings
Jun 5 City Commission Meeting
• Selection of the Final Proposer based on LOis and Master Plans
6
363
~tr!itf.!gi~AdvisoryGroup
Exhibit 2
Estimated Hours, Fees and Expenses
Fees
Project Oversight 30 20 50 $14,750
Commissioner meetings 35 0 35 11,375
Managing & Maintaining the Schedule 25 20 45 13,125
Facilitating project meetings 10 10 20 5,750
Participating in public forums and 32 16 48 14,400
corrnnission meetings
Drafting and reviewing written 20 10 30 9,000
correspondence related to the project
Preparing presentation materials 20 30 50 14,000
Facilitating developer discussions 40 10 50 15,500
Participating in design review meetings 30 30 60 17,250
Answering developer questions 20 15 35 10,250
Drafting the LOI template 30 10 40 12,250
Economic impact 10 35 45 12,000
Negotiating the LOI 60 15 75 23,250
362 221 583 172,900
Billing Rate $325 $250
Fees $117,650 $55,250 $172,900
Travel Expense Allowance (15%) 25,935
TOfAL $198,835
Average over 6 months $33,139
7
364
RESOLUTION NO.----
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 AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF MIAMI BEACH AND STRATEGIC ADVISORY GROUP (SAG)
DATED OCTOBER 19, 2011 FOR CONSULTING SERVICES RELATIVE TO THE
EXPANSION AND ENHANCEMENT OF THE MIAMI BEACH CONVENTION CENTER
(MBCC) CAMPUS/DISTRICT IN AN AMOUNT NOT TO EXCEED $198,835,1NCLUDING ALL
REIMBURSABLE EXPENSES, WITH PREVIOUSLY APPROPRIATED FUNDS FROM FY
2012/2013 BUDGET OPERATING FUND 168 RDA CITY CENTER OPERATIONS.
WHEREAS, on October 19, 2011, via Resolution No. 2011-27778, the City Commission
authorized the Mayor and City Clerk to enter into an agreement between the City and SAG for
services relative to the expansion and enhancement of the MBCC District, pursuant to Request
for Proposals (RFP) No 33-10/11 in an amount not to exceed $175,000, including all
reimbursable expenses; and
WHEREAS, SAG, as part of its scope of services, assisted the City in drafting the
Request for Qualifications (RFQ) for the master development of the MBCC District, and on
January 11, 2012, the City Commission authorized the Administration to issue 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 RFQ) which was subsequently issued on February 7, 2012; and
WHEREAS, on the RFQ deadline of April 23, 2012, the City received qualifications
packages from eight (8) Proposers in response to the RFQ; and
WHEREAS, at the December 12, 2012 City Commission meeting, the Commission
accepted the recommendation of the City Manager and short-listed two Proposers, first ranked
Portman CMC and second ranked South Beach ACE, to move forward to Phase II of the RFQ;
and
WHEREAS, as part of Phase II of the RFQ, Portman CMC and South Beach ACE will be
required to prepare a detailed proposal for their proposed development of the MBCC District,
and Letters of Intent (LOis) with the shortlisted Proposers will be negotiated, which will include
the scope of the renovation and design for the MBCC, the phasing plan, the financing plan, land
lease terms (if required) and other economic impacts, hotel room blocks, and traffic impacts,
and the LOI's will then be presented to the City Commission for consideration and further
action; and
WHEREAS, the Administration will require SAG's continued professional industry
consulting services for Phase II work, including assistance with the extensive public master
planning process with the community, and the negotiations of the LOis with Portman CMC and
South Beach ACE; and
WHEREAS, SAG, will manage, in conjunction with the City Administration, the
Master Planning and LOI Negotiations process including the following:
• Project oversight -this includes assisting the City on how to best maximize the
City's assets, informing the City on how to potentially generate maximum private
investment, updating the City on the status of the project, and assisting the City with
the resolution of any issues that may arise as the project progresses.
T:\AGENDA\2013\February 6\SAG MBCC Phase 2 Consulting Services RESO.doc
365
• Managing and maintaining the schedule -this includes taking the lead role in
creating, modifying, communicating, and administering the attached schedule
(Exhibit 1) with both the City team and the short listed developers. The goal of this
process will be to complete a master plan and LOI from each short listed team by the
targeted date.
• Preparing agendas and facilitating project meetings -The attached schedule
includes numerous meetings and work sessions. SAG will be responsible for
preparing the agenda for each meeting, ensuring participants are informed of
expectations, and facilitating each meeting as appropriate.
• Participating in public forums and commission meetings. There are four public
community meetings and four City Commission meetings currently planned. It is our
goal to create an environment whereby the community speaks directly to the short-
listed development teams, not an intermediary consultant. Nevertheless, SAG will
facilitate the meetings, meet in advance with leaders to prepare, and ensure the
proper presentation materials are prepared.
For the Commission meetings, SAG will assist with drafting briefing information,
participate in Commission member advance briefings, and prepare apple-to~apples
comparisons to ensure the Commission is presented with comparable data for their
decision making process.
• Drafting and reviewing written correspondence related to the project -SAG will
assist with the drafting and/or reviewing project information. This will include project
update memorandums, proposal comparisons, and correspondence to the
development teams.
• Preparing presentation materials -SAG will prepare presentation materials when
required. In addition, SAG will assist each development team with preparing their
materials to ensure each team presents like data in a similar fashion.
• Facilitating developer discussions -SAG will assist with the numerous meetings,
conference calls, and discussions with the short listed teams to communicate the
City's objectives, deliverable expectations, financing options, master plan issues,
etc.
• Participating in design review meetings -SAG will participate and coordinate the
planned design review meetings. Our main role will be to monitor how each team is
moving forward and ensure the Commission, community, convention center, City
and other stakeholder issues are being addressed.
• Answering developer questions -SAG will be the clearinghouse to answer
developer questions as they arise, ensuring the proper team member from the City
team is counseled, and that the answer is communicated.
• Drafting the LOI template-SAG will draft, in conjunction with the City's legal team, a
letter of intent template outlining the broad terms for the proposal. The LOI will
address: diagrams and renderings communicating the vision for the site; square foot
program for each component; phasing plan and project absorption schedule;
development cash flows (revenues, expense, capital, etc.) for each component, with
a summary of significant assumptions, demonstrating financial viability; terms for
leasing land for private development; plan for raising capital and known funding
commitments; scope of services and fee for management of the renovation and
expansion of the MBCC and any other public assets requested to be developed;
scope of services and fee for design of the renovation and expansion of the MBCC
and any other public assets requested to be developed; requested role of the City;
hotel room-block commitment; and the plan to involve the community in the
refinement of the vision.
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• Economic impact-one of the requirements of the RFQ is for each short listed team
to provide an analysis of the economic impact of the proposed master plan, with
documentation supporting how the estimated economic impact was derived. In
addition each team must provide a summary of City revenues generated by the
private components of the project over time, including property taxes, hotel taxes
and sales taxes.
SAG will provide guidance to each team on how these analyses are to be completed
to enable an apples-to-apples comparison of the proposals. This will include
providing each team with a common methodology and assumptions for each
calculation.
• Negotiating the LOI -SAG will work in concert with the City legal team to negotiate
the LOis. This will entail numerous conference calls and meetings to ensure each
proposal addresses all issues and that each is as favorable to the City as possible.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that the Mayor and City
Commission hereby.
PASSED AND ADOPTED this 6th day of February 6, 2013.
ATTEST:
Matti Herrera Bower, Mayor Rafael Granado, City Clerk
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APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
City Attorney Date