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MIAMIBEACH
City Gommission Meeting
ADDENDUM MATERIAL 4
City Hall, Commission Chambers, 3rd Floor, 1700 Convention Center Drive
February 11,2015
Mayor Philip Levine
Vice-Mayor Joy Malakoff
Commissioner Michael Grieco
Commissioner Micky Steinberg
Commissioner Edward L. Tobin
Commissioner Deede Weithorn
Commissioner Jonah Wolfson
City Manager Jimmy L. Morales
City Attorney Raul J. Aguila
City Clerk Rafael E. Granado
Visif us at www.miamibeachfl.gov for agendas and video "streaming" of City Commission Meetings.
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Attorney.
ADDENDUM AGENDA
R7 - Resolutions
R7G A Resolution Approving And Authorizing The City Manager To Execute Amendment Number 5 To
The Professional Services Agreement With Fentress Architects ("Fentress") ln The Lump Sum
Amount Of $14,469,500, For Additional Design And Construction Administration Services ForThe
Miami Beach Convention Center Renovation And Expansion Project (The Project); Accepting
The City Manager's Certification Of A Valid Public Emergency And Waiving The Public
Announcement And Qualification Procedures Of The Consultants' Competitive Negotiation Act
("CCNA") Pursuant To Fla. Stat. 287.055(3XAX1).
(Office of the City Manager)
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COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida, Approving And
Authorizing The City Manager To Execute Amendment Number 5 To The Professional Services Agreement
With Fentress Architects ("Fentress") ln The Lump Sum Amount Of $14,469,500, For Additionat Design And
Construction Administration Services For The Miami Beach Convention Center Renovation And Expansion
Project (The Prolect), lncluding The Completion Of Construction Documents For The Project; Accepting
The City Manager's Certification Of A Valid Public Emergency And Waiving The Public Announcement And
Qualification Procedures Of The Consultants' Competitive Negotiation Act ("CCNA") Pursuant To Fta. Stat.
287.055(3XAX1
lmprove alliance with key business sectors, namely hospitality, arts & international business with a
focus on enhanced culture, entertainment & tourism.
Supporting Data (Surveys, Environmental Scan, etc.): N/A
By separate Memorandum in this Commission Meeting Agenda, the City Manager has recommended
cancelling the Design-Build Request for Proposals (RFP) process and moving forward with a new Request
for Qualifications (RFQ)for a Construction Manager-At-Risk firm.
The Construction Manager at Risk (CMR) process will require hiring an Architect of Record to complete the
design documents. lf the City were to issue an RFQ for a new firm to complete the design, the following
would result: 1) Substantial delays to the Project, as design packages would not be completed in time to
commence construction following conclusion of the December 2015 Art Basel events, thereby delaying the
Project by at least one additional year; 2) Additional costs in connection with design services redundancies
associated with a new firm familiarizing itself with the Project and Fentress's detailed Design Criteria
Package; 3) High likelihood of additional construction escalation and financing costs; 4) Loss of revenue to
the City resulting from delay in the imposition of the additional 1% Resort Tax approved by the voters in a
City-wide referendum on August 14,2012 pursuant to the Section 5.03 of the City Charter, and certified by
Resolution No. 201 2-28004.
Fentress is proposing an additional fee in the amount of $14,496,500 to modify its scope of services from
that of a Design Criteria Professional to that of the Architect of Record, whereby they will be responsible for
100% of the construction documents as well as construction administration services. The total amended
design fee (including design fee contingency) would equate to 6.3% of the $420 million budgeted trade
costs.
By way of comparison, we had estimated that under the design-build process, the design fees for the
design-builder would approximate $17.4 million. As such, this approach will reduce these costs by
approximately $3 million.
Based on the foregoing impacts to the Project associated with delay in completion of design and the City's
urgent need for a renovated Convention Center to support the City's tourism economy, I hereby certify a
valid public emergency and recommend the waiver of the public announcement and qualification
procedures of the CCNA pursuant to Fla. Stat. 287.055(3XaX1).
ADOPT THE RESOLUTION.
Source of
Funds:
Amount Account
1 $3,337,000 Miami Beach Redevelopment Agency Non-Trust Fund
Special Revenue Account No. 165-2616-061357
2 $1 1 ,132,500 To be awarded subject to funding availability
Tota!$14,469,500
Financial lmpact Summary:
Maria Hernandez, Extension 7284
5\February\MBCC\Design-Build RFP
fl7G^-ll-l{MIAMIBEACH DATE3
1915.20r5
MIAMIBEACH
City of Miqmi Beoch, ,l700 Convention Center Drive, Miomi Beoch, Florido 33139, www.miomibeochfl.gov
COMMISSION MEMORANDUM
TO:Mayor Philip Levine and Members 0f the City
FROM: Jimmy L. Morales, City Manager
DATE: February 11,2015
SUBJECT: A RESOLUTION OF THE MAYQR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY
MANAGER TO EXECUTE AMENDMENT NUMBER 5 TO THE PROFESSIONAL
SERVICES AGREEMENT WITH FENTRESS ARCHITECTS ("FENTRESS'') tN THE
LUMP SUM AMOUNT OF $14,469,500, FOR ADDITIONAL DESIGN AND
CONSTRUCTION ADMINISTRATION SERVICES FOR THE MIAM! BEACH
CONVENTION CENTER RENOVATION AND EXPANSION PROJECT (THE
PRoJEcr); ACCEPTING THE clw MANAGER'S cERTlFlcATtoN oF A vALtD
PUBLIC EMERGENCY AND WATVING THE PUBLIC ANNOUNCEMENT AND
QUALIFICATION PROCEDURES OF THE CONSULTANTS' COMPETITIVE
NEGOTTATION ACT (,,CCNA") PURSUANT TO FLA. STAT. 287.055(3)(AXl).
ADM! NISTRATION RECOMM ENDATION
Adopt the Resolution.
KEY INTENDED OUTCOME
lmprove alliance with key business sectors, namely hospitality, arts & international business
with a focus on enhanced culture, entertainment & tourism.
BACKGROUND
By separate Memorandum in this Commission Meeting Agenda, the City Manager has
recommended cancelling the Design-Build Request for Proposals (RFP) process and moving
fonarard with a new Request for Qualifications (RFO) for a Construction Manager-At-Risk firm. ln
the event the City Commission adopts that recommendation, then it will be appropriate to take
up this agenda item regarding design services.
ANALYSIS
The Construction Manager at Risk (CMAR) process will require hiring an Architect of Record to
complete the design documents. lf the City were to issue a Request for Qualifications for a new
firm to complete the design, the following would result:
1. Substantial delays to the Project, as design packages would not be completed in time to
commence construction as targeted, following conclusion of the December, 2015 Art
Basel events, thereby delaying the Project by at least one (1) additional year.
4
Fenfress Amendment No. 5
February 11,2015
Page 2
2. Additional costs in connection with design services redundancies associated with a new
firm familiarizing itself with the Project and Fentress's detailed Design Criteria Package.
3. A high likelihood of additional construction escalation and financing costs.
4. Loss of revenue to the City resulting from delay in the imposition of the additional 1%
Resort Tax approved by the voters in a City-wide referendum on August 14, 2012
pursuant to the Section 5.03 of the City Charter, and certified by Resolution No. 2012-
28004.
Furthermore, if the City were to issue a new Request for Qualifications for additional design
seryices, the City would seek qualifications and experience nearly identical to those previously
set forth in RFQ 2014-142-ME for the Design Criteria Professional for the Project, for which
Fentress was the top-ranked proposer.
Fentress is proposing an additional fee in the amount of $14,496,500 to modify its scope of
services from that of a Design Criteria Professional to that of the Architect of Record, whereby
they will be responsible for 100o/o of the construction documents as well as construction
administration services:
Original
Aqreement
Amended
Aqreement
Additional
Services Fee
Programming & Concept Design $1,584,653 $1,584,653
Schematic Design 2,714,700 2,714,700
Design Development & Criteria
Packaqe
3,486,999 3,486,988
Design Build Proposal Review 561,771 94,000 (467,771)
Construction Document Oversight 1,017,815 (1 ,017,815)
Construction Document Preparation 12,430,199 12,430,199
Construction Oversig ht 1,601,273 (1,601,273)
Construction Ad m in istration 5,126,160 5,1 26,1 60
Contract sub tota!10,967,200 25,436,700 14,469,500
Design Fee Contingency 1,000,000 1,000,000
TOTAL $11,967,200 $26,436,700 $14,469,500
By way of comparison, we had estimated that under the design-build process, the design fees
for the design-builder would approximate $17.4 million, including design builder mark ups. As
such, this approach will reduce these costs by approximately g3 million.
The overall project budget is $520.5 million ($49t.5 million for the convention center and
landscaped areas plus $29 million for parking related costs). Trade costs are estimated to be
$420 million after taking into account design/bidding contingencies and escalation, but excluding
general conditions, bonds, insurance, construction manager fees, and owner costs.
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Fenfress Amendment No. 5
February 11,2015
Page 3
The total amended design fee (including design fee contingency) would equate to 6.3% of trade
costs.
Trade Costs $ 420,000,000
Amended Agreement $ 26,436,700
Percentage 6.3o/o
This fee is the lowest among comparable convention center projects. The following is a table of
convention center design fees as a percent of construction trade costs:
Palm Springs 12.200/o
Santa Fe 8.63%
Orlando Phase 5 8.00%
Pasadena 7.30%
Vail 7.Qlo/o
San Diego 7.04o/o
Denver Phase 2 7.000/o
Denver Phase 1 6.33%
Average Percentage 7.950/"
CITY MANAGER'S RECOMMENDATION
Based on the foregoing impacts to the Project associated with delay in completion of design and
the City's urgent need for a renovated Convention Center to support the City's tourism
economy, I hereby certify a valid public emergency and recommend the waiver of the public
announcement and qualification procedures of the CCNA pursuant to Fla. Stat.
287.055(3)(aX1 ).
CONCLUSION
The Administration recommends that the Mayor and City Commission approve and authorize
the City Manager to execute Amendment Number 5 to the Professional Services Agreement
with Fentress Architects ("Fentress") in the lump sum amount of $14,469,500, for additional
design and construction administration services for the Miami Beach Convention Center
Renovation and Expansion Project; accepting the City Manager's certification of a valid public
emergency and waiving the public announcement and qualification procedures of the
Consultants' Competitive Negotiation Act ("CCNA") pursuant to Fla. Stat. 287.055(3)(a)(1).
JLM:MT:MH:AD
T:\AGENDA\201 5\February\MBCC\Fentress Amendment 5 - MEMO.docx
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RESOLUTION NO. 2015.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE C!ry OF
MIAMI BEAGH, FLORIDA, APPROVING AND AUTHORIZING THE CITY
MANAGER TO EXECUTE AMENDMENT NUMBER 5 TO THE
PROFESSIONAL SERVICES AGREEMENT WITH FENTRESS ARCHITECTS
("FENTRESS") tN THE LUMP SUM AMOUNT OF $14,469,500, FOR
ADDITIONAL DESIGN AND CONSTRUCTION ADMINISTRATION SERVICES
FOR THE MIAMI BEACH CONVENTION CENTER RENOVATION AND
EXPANSION PROJECT (THE PROJEGT); ACCEPTING THE CITY
MANAGER'S CERTIFICATION OF A VALID PUBLIC EMERGENCY AND
WAIVING THE PUBLIC ANNOUNCEMENT AND QUALIFICATION
PROCEDURES OF THE CONSULTANTS' COMPETITIVE NEGOTIATION ACT
("ccNA") PURSUANT TO FLA. STAT. 287.055(3)(AX1).
WHEREAS, on February 12, 2014, the Mayor and City Commission authorized the
issuance of RFQ 2014-142-ME for Design Criteria Professional Services for the Miami Beach
Convention Center Renovation and Expansion Project (the "RFP") pursuant to the public
announcement and qualification procedures of the CCNA, set forth in Section 287.055 of the
Florida Statutes; and
WHEREAS, on March 11, 2014, the City Manager appointed an Evaluation Committee
via Letter to Commission No. 079-2014, to review the eight submissions the City received from
design firms, and on March 25,2014, the Evaluation Committee convened and ranked Fentress
as the top-ranked proposer, in part due to Fentress's substantial experience in designing
convention centers in Denver, Colorado (honored with 18 awards for innovation and excellence
in design); Pasadena, California; Palm Springs, California; and Santa Fe, New Mexico; and
WHEREAS, on April 19, 2014, the Mayor and City Commission adopted Resolution No.
2014-28538, approving the execution of a Professional Services Agreement with Fentress for
the Design Criteria Professional Services for the Project; and
WHEREAS, on July 30,2014, the Mayor and City Commission authorized the issuance
of RFP 2014-294-ME for Design Builder Services for the Miami Beach Convention Center
Renovation and Expansion (the "RFP") pursuant to Section 287.055 of the Florida Statutes; and
WHEREAS, on November 19, 2014, the City Commission adopted Resolution No.
2014-28848, accepting the recommendation of the City Manager to short-list the top three
proposers (Clark, Hunt, and Hensel Phelps) to proceed to Phase ll of the RFP evaluation
process; and
WHEREAS, on December 16, 2014, the Miami-Dade County Board of County
Commissioners adopted Resolution No. R-1110-14, approving, among other things, the
issuance of tax increment revenue bonds in an amount not-to-exceed $430,000,000, to be used
for specified purposes, including the design and construction of the Project;
WHEREAS, on December 18, 2014, the City Commission adopted Resolution No. 2014-
28882, approving the issuance to the short-listed firms of the Design Criteria Package timely
7
prepared by Fentress, which included approximately 1,320 drawings, 2,326 pages of Technical
Specifications and a 996 page design narrative, developed with the assistance of Fentress's
team of fourteen sub-consultants and experts; and
WHEREAS, the Design Criteria Package prepared by Fentress represents
approximately 30% completion of the design development for the Project, with a number of the
design packages (such as for building enclosure materials and configuration, interior finishes,
millwork, HVAC supply and return grilles, vertical transportation, low-voltage equipment and
specialty equipment) at over 80% design completion stage;
WHEREAS, on November 19,2014, following the City Commission's adoption of
Resolution No. 2014-28848, and short-listing of firms for Phase ll of the RFP Process, Hensel
Phelps informed the City of its decision to withdraw from the RFP process, and subsequently,
on January 21,2015, Hunt notified the City of its withdrawal from the Phase ll evaluation
process; and
WHEREAS, on January 27,2015, the City Commission adopted Resolution No. 2015-
28907, which, in pertinent part, directed the City Administration to meet with Clark to better
understand Clark's ability to deliver the Project within the City's budget and ascertain whether
the City and the public could be assured that Clark's pricing is competitive, notwithstanding
Clark's position as the sole remaining bidder for the Project; and
WHEREAS, on February 5,2015, the City Administration met with over 20 members of
Clark's team, and it became clear that the Project, as designed, could not be delivered within
the City's budget unless the City hastily approved a number of "value engineering" or re-design
proposals; and
WHEREAS, in order to permit the City to meet the existing Project timeline, calling for
completion of the Project by 2018 while accommodating Art Basel and other events at the
Convention Center during construction, the City Manager has recommended cancelling the RFP
and moving fonruard with a new Request for Proposals or Request for Qualifications for a
Construction Manager-At-Risk firm to deliver the Project; and
WHEREAS, proceeding with the Project on an expedited basis is critical to the City, as a
renovated Convention Center is essential to attracting convention business to the City and vital
to supporting the City's tourism economy; and
WHEREAS, if the City were to issue a new Request for Qualifications for additional
design services, the City would experience substantial delays to the Project, as design
packages would not be completed in time to commence construction as targeted, following
conclusion of the December, 2015 Art Basel events, thereby delaying the Project by at least one
(1) additional year; and
WHEREAS, if the City were to issue a new Request for Qualifications for additional
design services, the Project would experience additional costs in connection with design
services redundancies associated with a new firm familiarizing itself with the Project and
Fentress's detailed Design Criteria Package; a high likelihood of additional construction
escalation and financing costs; and a loss of revenue to the City resulting from delay in the
imposition of the additional 1% Resort Tax approved by the voters in a City-wide referendum on
August 14, 2012 pursuant to the Section 5.03 of the City Charter, and certified by Resolution
No. 201 2-28004;
8
WHEREAS, if the City were to issue a new Request for Qualifications for additional
design services, the City would seek qualifications and experience nearly identical to those
previously set forth in RFQ 2014-142-ME for the Design Criteria Professional for the Project, for
which Fentress was the top-ranked proposer; and
WHEREAS, based on the foregoing impacts to the Project associated with delay in
completion of design and the City's urgent need for a renovated Convention Center to support
the City's tourism economy, the City Manager has certified a valid public emergency and has
recommended the waiver of the public announcement and qualification procedures of the CCNA
pursuant to Fla. Stat. 287.055(3)(a)(1).
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CIry COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve
and authorize the City Manager to execute Amendment Number 5 to the Professional Services
Agreement with Fentress Architects in the lump sum amount of $14,469,500, for additional
design and construction administration services for the Project; accept the City Manager's
certification of a valid public emergency and waive the public announcement and qualification
procedures of the CCNA pursuant to Fla. Stat. 287.055(3XaX1).
PASSED AND ADOPTED this
ATTEST:
Rafael Granado, City Clerk Philip Levine, Mayor
day of 2015.
APPRO\ED AS TO
FORIi & IAT.IGUAGE
EXECT'IION
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