94-21408 RESO Incomplete
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA
AUTHORIZING THE MAYOR AND ADMINISTRATION TO
PAY ARTHUR ANDERSON &: CO., SC FOR SERVICES
RENDERED IN CONNECTION WITH THE CONVENTION
CENTER HOTEL PROJECTS.
WHEREAS, Arthur Andersen &: Co., SC ( "Arthur Andersen" )
performed various services for the City of Miami Beach 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 City Commission 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
additional work, plus
amount includes a 25%
Andersen
expenses,
discount;
has billed
in the amount
and
the City for such
of $90,548.00, which
WHEREAS, as a result of the efforts of Commissioner Eisenberg
in negotiating with Arthur Andersen for a fee reduction, that
balance to the City 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
("GMCVB"), 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 MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that the Mayor and
the City Administration hereby are authorized to pay Arthur
Andersen the sum of $90,548.00 as provided above.
PASSED and ADOPTED THIS
day of
, 1994.
MAYOR
ATTEST:
CITY CLERK
FORM APPROVID
1Apl~
By Tt...3)
DIIe_I\- I'\-'i'\
Total paYJllents made on Arthur Andersen coutraet to dllte:
Date Billed
Amount
8/93
2/94
5/94
$ 26,200.00
$ 40,862.50
$ 82,937.50
$ 30.491.50
$113,429.00
$ 91,167.00
8/94
Total:
$271.658.50
Pllid Bv Explanation
GMCVB Initial invoice Step I services
GMCYB RFP production &. printing. Paid directly to Grafilto, Inc.
GMCYB
Redev Agency.
Total Balance Step I scrvices
Redev Agency. Initial invoice Step 2 services
Actual Amount Received by Arthur Andersen:
$230,796.00
Nnte: (.) To be reimbursed by GMCYR as 01' 1Il/1/94
Total fees currentlv and anticipated outstandine
Amount
Status
$ 70,548.00
$ 20,000.00
$ 50,000.00
$ 25.000.00
$165,548.00
EXDlanntion
Billed 9/13/94, pending Preparation of joint financial report with Bear Steams, not within
original scope of contract.
Not billed yet Additional authorized services
Not billed yet Upon execution of Loews contract
Not billed yet Upon execUlion of HCF contract
Total Estimated Fees Outstanding
$271.658.50
$165.548.00
$437,206.50
Billed
Outstanding
Total Anticipated payments on Arthur Andersen Contract:
GMCVR Reimbursement Schedule
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:
5300.000.00
$ 26,200.00
$ 40,862.50
$ 82,93750
$ 30,49 I.50
$ 91.167.00
$271,658.50
$ 28,341.50 (Relllaiuing Credit as of 11/1/94)
Estimated Remaining Fees to Arthur Andersen:
Less Remaining Credit from GMCYR
Total Estimated Out-of.Pncket Expenses to City:
$165,548.00
28.341.00
$137,206.50
SUMMARY OF ARTHUR ANDERSEN INVOICES AND PAYMENTS
Contract fee stMldure as anuroved bv Citv 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 first 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 Bur.au tGMCVB) Contract
$150,000
$150.000
$300,000
Available FY 93/')4
Available FY <)-1/'):;
Total assistance for paymenl or Arthur Andersen Contract
Actual fees billed bv 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
Exuenses
$ 23,946.00
$ 65,683.00
$ 40.862.50
$130,491.50
Exnenses
$ 4,467.00
$ 4,467.00
Services
Note: (*) Outstanding amount
EXDenses
$ 75,000.00
$ 75,000.00
$302,248.00
$134,958.50
Total
$ 73,946.00
$ 65,683.00
$ 40.862.50
$180,491.50
Total
$ X4.467.00
$ 6,700.00
$ 70.:;48.00*
$ 20.000.00*
$181,715.00
Total
$ 75.000.00
$ 75.000.00
$437,206.50
Exnlanation
Step I services
Additional scope of preparing RFP document plus retainer of
(;ralitlo, Inc., for production and prin1ing of RFP, subcontracted by
Arthur Andcrsen upon approval by City Manager. Not within original
scope of contract.
Production and printing of RFP, billed by directly by Grafitto, Inc.
Sub-Total - Step 1 Services
Exnlanation
Step 2 services - 8 proposals @ $10,000 per proposal
Rc-evaluation of proposals requested by the City
Preparation of joint financial report with Bear Stearns, not within
l lriginal scope of cnntracl.
Additional aulhorizcd scrviccs as required
Sub-Total. Step 2 Services
Exnlanation
Anticipated Step 3. Services, based on signed contracts for the Loews
and the HCF projects
Sub-Tutul . Anticipated Step 3. Services
Total Anticipated Fees
CITY OF
MIAMI
BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
COMMISSION MEMORANDUM NO.
ffiS- 9 V
FROM:
Mayor Seymour Gelber and
Members of the City Commission
Roger M. Carlt n,.. f). , .....
City Manager ~
DATE: November 16. 1994
TO:
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 Comnarative Review of "Short Listed" Pronosals
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
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. 62
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AGENDA ITEM R ~ I ~ A
DATE-1'-I!.t,-Qt/
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.
t':-
63
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'.
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
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