R7D-Execute Amendment 8 Agmt w-SAG For Consulting Services Relative To MBCC ProjCondensed 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 Amendment No. 8 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, ln An Amount
Not To Exceed $700,000,Reimbursable
COMMISSION ITEM SUMMARY
lntended Outcome
Item Summ
On October 19,2011, the City Commission approved an agreement with Strategic Advisory Group (SAG) for
services relative to the expansion and enhancement of the Miami Beach Convention Center District, in an amount
not to exceed $175,000. On January 11,2012, the City Commission authorized the issuance of Request for
Qualifications No.22-11112(the 2012 RFQ)fora public-private mixed-use development in Miami Beach forthe
enhancement of the MBCC district. On February 6, and March 13, 2013, the Commission authorized
Amendments No. 1 and 2 to the SAG Agreement, respectively, for additional services relative to the 2012 RFQ.
On January 15,2014, the City Commission adopted Resolution No. 2014-28479 terminating negotiations with
South Beach ACE (selected pursuant lo lhe 2012 RFQ), directing the Administration to prepare a new RFP or
RFQ for design-build or design services for the renovation of the Convention Center alone, and to identifu
potential sites for a Hotel. On February 12, 2014, the City Commission approved the issuance of RFQ 2014-
142ME, for a Design Criteria Professional for the Convention Center Renovation Project, and authorized the City
Manager to negotiate and execute any additional contracts, as required, in order to expedite this process,
including but not limited to additional amendments to the SAG Agreement. Amendments No. 3 and 4, totaling
$548,900, were executed pursuant to this directive. On September 10,2014, the City Commission directed the
Administration to prepare a traffic study related to the development of a Convention Center Headquarter Hotel
and to prepare a schedule for the potential procurement of a hotel developer. Amendment No.5, for consulting
services associated with these tasks was executed in an amount not to exceed $30,000. On December 18,2014,
the City Commission authorized the Mayor and City Clerk to execute Amendment No. 6 for the additional services
associated with the procurement process of the hotel developer, in an amount not to exceed $166,375.
On February 11,2015, the City Commission elected to re-bid the Project under a Construction Manager-at-Risk
(CMAR) project delivery method, and on May 20, 2015, the Commission authorized Amendment No. 7, for
continuing services related to the pre-construction phase services through December 31 , 2015, for a not to
exceed amount of $198,825, and for asset management services to guide, monitor and oversee the
transformation of the sales and marketing efforts, event and revenue focus, branding and operating strategies of
the new Convention Center, for a not-to-exceed amount of $160,000.
The proposed Amendment No. 8 provides for: 1) an extension of Convention Center project services on a more
limited basis through the Construction Phase period ending July 31 ,2018:2) an extension of asset management
services through March 31 , 2017; and 3) an extension of consulting relative to the Convention Center hotel
development, if the referendum related to the Hotel Development and Ground Lease Agreement is approved in a
special election on March 15,2016.
The Administration recommends he Citv Commission adopt the Resolution.
Source of
Funds:
Amount Account
1 $300,000 165-2816-061 357 Miami Beach Redevelopment Agency
Non-Trust Fund Soecial Revenue Account
2 $160,000 160-4300-000312 City's Resort Tax Fund
3 $240,000 Subject to future Capital Budget amendment, if Hotel
Development and Ground Lease Agreement is approved in
Referendum.
Total $700,000
Financial Impact Summary: N/A
lmprove alliance with key business sectors, namely hospitality, arts & international business with a focus on
enhanced culture. ente(ainment & tourism.
Supporting Data (Surveys, E etc N/A
Financial lnformation :
-Offs:
Department Director Assistant City Manager City II/nager
MH Aq JLM/E-
docxAmendment #8 -
AGENDA '""
(1 DMIAMIBEACHD^rE /0-a/- ls224
MIAMIBEACH
City of Miomi Beqch, I700 Convention Center Drive, Miomi Beoch, Florido 33,l39, www.miomibeochfl.gov
COMMISSION MEMORANDUM
Mayor Philip Levine and Members of City Com
Jimmy L. Morales, City Manager
October 21,2015
A RESOLUTION OF THE MAYOR CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, APPROVING AUTHORIZING THE MAYOR AND CITY CLERK
TO EXECUTE AMENDMENT NO. 8 TO THE PROFESSIONAL SERVIGES AGREEMENT
BETWEEN THE CITY OF MIAMI BEACH AND STRATEGIC ADVISORY GROUP DATED
OCTOBER 19,2011 FOR CONSULTING SERVIGES RELATIVE TO THE EXPANSION
AND ENHANCEMENT OF THE MIAMI BEACH CONVENTION CENTER IN AN AMOUNT
NOT TO EXCEED $7OO,OOO, !NCLUDING ALL REIMBURSABLE EXPENSES.
ADM INISTRATION 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.
FUNDING. Convention Center Expansion and Renovation Services: $300,000 is available from Miami Beach
Redevelopment Agency Non-Trust Fund Special Revenue Account No. 165-2816-061357 and is
included in the Convention Center Project Budget.
o Convention Center Asset Management Services: $160,000 is available from the City's Resort Tax
Fund, Account Number 160-4300-00031 2.
o Convention Hotel City's Representative Services: $240,000 subject to future Capital Budget
amendment, if the Hotel Development and Ground Lease Agreement is approved in Referendum.
BACKGROUND
On October 19, 2011, the City Commission authorized the Mayor and City Clerk to enter into an agreement
with Strategic Advisory Group (SAG) for services relative to the expansion and enhancement of the Miami
Beach Convention Center District, in an amount not to exceed $175,000. SAG's fees were exhausted upon
completion of Phase I of RFQ No. 22-11l12, issued for the selection of qualified developers for a public-
private mixed-use development including the expansion of the Miami Beach Convention Center and
development of a Convention Center Hotel (Hotel).
On February 6, 2013, and March 13,2013, the Commission authorized Amendments No. 1 and 2 to the SAG
Agreement, respectively, for additional services relative to the 2012 RFQ, totaling $307,232.
On February 12, 2014, lhe City Commission approved the issuance of RFQ 2014-142ME, for a Design
Criteria Professional to prepare a Design Criteria Package for the Convention Center Renovation Project, and
authorized the City Manager to negotiate and execute any additional contracts, as required, in order to
expedite this process, including but not limited to additional amendments to the SAG Agreement.
Amendments No. 3 and 4, totaling $548,900 were executed pursuant to this directive, for services through
May 31,2015.
TO:
FROM:
DATE:
SUBJECT:
225
Strategic Advisory Group Consulting Servlces for the MBCC Expansion and Renovation Project
October 21, 2015
Page 2 of 2
On September 10, 2014, lhe City Commission directed the Administration to prepare a traffic study related to
the development of a Convention Center Headquarter Hotel and to prepare a schedule for the potential
procurement of a hotel developer. Amendment No.S, for consulting services associated with these tasks was
executed in an amount not to exceed $30,000.
On December 18, 2014, the City Commission authorized the Mayor and City Clerk to execute Amendment
No. 6 for consulting services relative to the procurement process of a hotel developer, for an amount not-to-
exceed of $166,375.
On May 20,2015, the City Commission authorized the Mayor and City Clerk to execute Amendment No. 7 for
a notto exceed amountof $358,825, forconsulting services relative to: 1) SAG's extended convention center
project services driven by the change to a construction manager at-risk project delivery method, including
design oversight, construction manager oversight, construction manager guaranteed maximum price
negotiations, cost estimating oversight, early bid package planning and oversight, bond funding / financing
assistance, presentations, and City Commission approvals for the period beginning June 1 , 2015 through
December 31, 2015; and 2) Asset management services to negotiate a performance-based contract with the
Greater Miami Convention and Visitors Bureau, and to guide, monitor and oversee the transformation of the
sales and marketing efforts, event and revenue focus, branding, and operating strategies of the new MBCC
through March 31,2016.
This Amendment No. 8 provides for: 1) an extension of SAG's Convention Center project services on a more
limited basis through the construction period ending July 31 , 2018; 2) an extension of SAG's asset
management services through March 31, 2017; and 3) if the Hotel Development and Ground Lease
Agreement is approved in a special election, an extension of SAG's services related to Amendment 6 for
consulting services relative to the convention center hotel.
FEE AND SCHEDULE INFORMATION
A copy of the SAG Amendment #8 is attached. SAG's hourly billing rates will remain at the same, reduced,
level as approved in 2014. The fees and expenses in this Amendment shall not exceed $700,000:
o Construction Period Services (January 1,2016 through July 31 ,2018) - Fees and expenses are not to
exceed $300,000 ($10,000 per month on average over 30 months).
. Asset Management Services (April 2016 - March 2017) - Fees and expenses are not to exceed
$160,000 ($13,333 per month on average over 12 months).
o Convention Hotel City's Representative Services (March 2016 - March 2019) - lf the Hotel
Development and Ground Lease Agreement is approved in a special election, fees and expenses are
not to exceed $240,000 ($6,667 per month on average over 36 months).
CONC LUSION/RECOM M ENDATION
The Administration recommends that the Mayor and City Commission adopt the attached Resolution
approving and authorizing the Mayor and City Clerk to execute Amendment No. 8 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 in an
amount not to exceed $700,000, including all reimbursable expenses.
Attachments:
1. Amendment No. 8
JLM / MH
T:\AGENDA\201S\October\MBCC Oct 2'1\SAG Amendment\SAG Amendment #8 - MEMO.docx
226
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CIry
OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE AMENDMENT NO. 8 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 IN AN
AMOUNT NOT TO EXCEED $7OO,OOO.OO, INCLUDING ALL
REIMBURSABLE EXPENSES.
WHEREAS, on October 19, 2011, the City Commission authorized the Mayorand City
Clerk to enter into an Agreement with Strategic Advisory Group (SAG) for services relative to the
expansion and enhancement of the Miami Beach Convention Center District, in an amount not
to exceed $175,000; and
WHEREAS, on January 11,2012, the City Commission authorized the issuance of
Request for Qualifications No. 22-11112 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
"2012 RFQ"); and
WHEREAS, on February 6, 2013, and March 13, 2013, the Commission authorized
Amendments No. 1 and 2 to the SAG Agreement, respectively, for additional services relative to
the 2012 RFQ;
WHEREAS, on January 15, 2014, the City Commission adopted Resolution No. 2014-
28479, canceling the 2012 RFQ and directing the Administration to prepare a new RFP or RFQ
for design-build or design services for the renovation of the Convention Center, and further
directing the Administration to identify potential sites for a Convention Center Headquarter Hotel;
and
WHEREAS, on February 12, 2014, the City Commission approved the issuance of RFQ
2014-142ME, for a Design Criteria Professional to prepare a Design Criteria Package for the
Convention Center Renovation Project, and authorized the City Manager to negotiate and
execute any additional contracts, as required, in order to expedite this process, including but not
limited to additional amendments to the SAG Agreement; and
WHEREAS, Amendments No. 3 and 4, totaling $548,900, were executed pursuant to the
Commission's February 12,2014 directive, covering all of SAG's services from the beginning of
the current design-build RFQ process through the anticipated selection of a Design-Builder in
2015 and execution of a Design-Build Agreement; and
WHEREAS, on September 10, 2014the City Commission directed the Administration to
work with the Greater Miami Convention and Visitors Bureau to create a performance-based
contract that outlines specific goals, objectives and success measures for any future Convention
Center marketing agreement; and
227
WHEREAS, Amendment No. 5, for consulting services associated with the development
of a Convention Center Headquarter Hotel, was executed in an amount not to exceed $30,000;
and
WHEREAS, on December 18, 2014, the City Commission authorized the Mayor and City
Clerk to execute Amendment No. 6 for the additional services associated with the procurement
process of the hotel developer, in an amount not to exceed $166,375; and
WHEREAS, on February 11,2015, the City Commission elected to re-bid the Project
under a Construction Manager-at-Risk (CMAR) project delivery method; and
WHEREAS, on May 20, 2015, the Commission authorized Amendment No. 7, which
provides for SAG's continuing services related to the pre-construction phase services through
December 31,2015, for a not to exceed amount of $198,825, and for asset management
services to guide, monitor and oversee the transformation of the sales and marketing efforts,
event and revenue focus, branding and operating strategies of the new Convention Center, for a
not-to-exceed amount of $160,000; and
WHEREAS, the proposed Amendment No. 8 provides for: 1) an extension of SAG's
Convention Center project services on a more limited basis through the Construction Phase
period ending July 31 , 2018; 2) an extension of SAG's asset management services through
March 31, 2017; and 3) an extension of SAG's services related to Amendment 6 for consulting
services relative to the Convention Center hotel development, if the referendum related to the
Hotel Development and Ground Lease Agreement is approved in a special election on March
15, 2016; and
WHEREAS, SAG's fees are based on time worked on the project multiplied by the hourly
rates, which have been reduced from the rates approved in the originalAgreement.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAM! BEACH FLORIDA, that the Mayor and City
Commission hereby approve and authorize the Mayor and City Clerk to execute Amendment
No. 8 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, in an amount notto-exceed $700,000.00,
including reim bursable expenses.
PASSED and ADOPTED this day of October, 2015.
Philip Levine, Mayor
ATTESTED BY:
APPNOVED A3 lU
FORM &IANGUAGE
IFOR EGCUIIOil
Rafael E. Granado, City Clerk
ru[rzlrfB-
228
St rate g i cAdvisoryG ro u p
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. Gonstruction 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. Gonvention Hotel Gonsulting Services (March 16,2016 - March 31,2019)
lf 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
33-i8 Sair,tlnnes Court . J-,utn GA 3C096 . 16I3,54-+-0105
229
Strate g i cAdvisoryGroup
monitoring the progress of the hotel pro1ect 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
Construction Period Services (January 1,2016 through July 31 ,2018)
SAG's fees will be based on the time worked on the prolect 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.
Asset Management Services (April 1,2016 through March 31,20171
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.
Convention Hotel Gonsulting 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
1.
2.
3.
230
Strate g i cAdvisoryGroup
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
Amount Remaining from Amendment 6
Additional Fee
300,000
-60,000
_$49p9q
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.
lN WITNESS WHEREOF, the parties by their duly authorized representatives have
caused this Subcontract Agreement to be executed as of the date first written above.
CITY OF MIAMI BEACH, FLORIDA
ATTEST:
Rafael E. Granado, City Clerk Philip Levine, Mayor
STRATEGIC ADVISORY GROUP LLC
ATTEST:
Jeffrey Sachs, Managing Partner
By:
By:
APPRO\CDASTO
FORM & I.ANGUAGE
IFOR EXECUTIO{
Thomas Reifert, Principal
231