99-23167 RESO
RESOLUTION NO. 99-23167
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING, BY SI7THS VOTE, A WAIVER OF
COMPETITIVE BIDDING, AND HEREIN AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE A MANAGEMENT AGREEMENT WITH CHUCK
HART MANAGEMENT GROUP, INC., TO PROVIDE PROFESSIONAL
SERVICES FOR MANAGEMENT OF THE CITY'S GOLF COURSES; SAID
AGREEMENT COMMENCING ON OCTOBER 1, 1999, AND CONCLUDING ON
SEPTEMBER 30, 2001, WITH AN OPTION TO RENEW FOR THREE YEARS, ON
A YEAR- TO-YEAR BASIS.
WHEREAS, on June 14, 1996, the City issued Request For Proposals No. 116-95/96, seeking professional
services for an operator to manage and maintain the Bayshore, Par 3 and Normandy Shores Golf Courses (the RFP);
and
WHEREAS, the RFP was mailed to fifty (50) prospective proposers and three (3) proposals were received
on July 5, 1996; and
WHEREAS, a selection committee, comprised of representatives from the Golf Course Ad Hoc
Committee, Golf Advisory Board, and the Administration heard presentations by the three respondents to the RFP
on July II, 1996, and ultimately recommended Chuck Hart Management Group, Inc.; and
WHEREAS, at its meeting of September II, 1996, the Mayor and City Commission authorized the
Administration to enter into an Agreement with the Chuck Hart Management Group, Inc. for professional
management services of the City's golf courses, for the period of October I, 1996 to September 30, 1999 (the
Agreement); and
WHEREAS, since Chuck Hart Management Group, Inc. began managing the City's golf courses, the City,
the Mayor's Ad Hoc Golf Committee, Golf Advisory Board and other interested community representatives have
discussed, recommended and evaluated several options to renovate or redesign the golf courses; and
WHEREAS, in response to these recommendations, the City issued a Request for Qualifications seeking
the professional services of qualified golf course architect(s) and golf course clubhouse architects to prepare
conceptual designs, plans, and specifications for the redesign or renovation, or a combination of redesign and
renovation, of the Bayshore, Normandy Shores, and Par 3 Golf Courses and clubhouses; and
WHEREAS, qualified architects were selected and approved for the redesign/restoration of the golf
courses and clubhouses; and
WHEREAS, the preliminary design cost estimates for the golf courses and clubhouses improvements are
being developed; and
WHEREAS, on October 12, 1998, the City issued a Request For Proposals for a feasibility study to assist
with the evaluation of the financing strategies and to develop recommendations for a preferred strategy; and
WHEREAS, on November 4, 1998, the Mayor and City Commission approved a contract with ERA
(Economic Research Associates) for the feasibility study and authorized the Administration to proceed; and
WHEREAS, on February 25, 1999, the results of the study prepared by ERA were presented and discussed
at the Finance & Citywide Projects Committee meeting, with the Committee's recommendation to forward the
report to the Mayor and City Commission on March 3, 1999, for further action; and
WHEREAS, at the March 3, 1999 meeting, the Mayor and City Commission recommended that a separate
general obligation bond for the golf courses be put on the ballot and that the issue come back to the Mayor and City
Commission; and
WHEREAS, due to the comprehensive analysis of various improvements to the golf courses and
clubhouses, and financial plans and studies being conducted, the originally projected time frame of three (3) years
to complete all the anticipated phases has been delayed; and
WHEREAS, until such time as final improvement recommendations are accepted, funding is in place, and
the authorization to proceed is given, the golf courses must continue to be properly maintained and operated; and
WHEREAS, the current Agreement with Chuck Hart Management Group, Inc. ends on September 30,
1999, and it is the Administration's opinion that to re-bid the management and operation of the City's golf courses
until they are renovated may result in loss of revenue, or quality of services currently being provided; and
WHEREAS, at its meeting of March 4,1999, the City's Golf Advisory Board members expressed their
overall satisfaction with the conditions ofthe golf courses, the level of services, as well as the Hart Group's
management ofthe courses, and voted unanimously to recommend the City enter into another Agreement with
them; and
WHEREAS, accordingly, the Administration recommends that the Mayor and City Commission herein
waive the competitive bidding process, finding such waiver to be in the best interest of the City, and authorize the
Mayor and City Clerk to execute a new Agreement between the City and the Chuck Hart Management Group, Inc.,
for an initial term not to exceed two (2) years, commencing on October I, 1999, and ending on September 30,2001,
with an option to renew for three additional years, on a year-to-year basis.
NOW THEREFORE, BE IT DULY RESOL YED BY THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission herein approve, by S/7ths vote, a
waiver of competitive bidding, finding such waiver to be in the best interest of the City, and herein authorize the
Mayor and City Clerk to execute the attached Management Agreement with the Chuck Hart Management Group,
Inc., to provide professional services for management of the City's golf courses, said Agreement to commence on
October I, 1999, and concluding on September 30, 2001, with an option to renew for three additional years, on a
year-to-year basis.
PASSED AND ADOPTED this 12th day of May, 1999.
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ATTEST:
~Lr~
Robert Parcher, City Clerk
SR/MDB/KS/eb
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
A:\HARTAGM2.RES
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PARKS & RECREATION
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TO:
Raul Aguila
Fir~ i~tant City,
~~ rector
Parks and Recreation Department
99 ~Tf13 Nt~~s1?' 1999
GITY CLU(tI'S OFFICE
FROM:
SUBJECT:
REVISED COMMISSION RESOLUTION AND MANAGEMENT
AGREEMENT FOR HART MANAGEMENT GROUP, INC.
As per the directive of the City Commission at its May 12, 1999 meeting, please find attached a
revised Resolution and Management Agreement for the Hart Management Group, Inc., to provide
professional services for the management of the City's golf courses.
The specific revisions include:
. The term of the agreement has been reduced from an initial three year term with an option
to renew for two years, on a year to year basis to a 1 year term to include a 60-day
cancellation clause.
. That a clause be inserted into the agreement that requires Hart to respond to inspection
reports conducted by the Parks Department to ensure compliance with established
maintenance standards and a time line for response be addressed.
The new agreement responds to these stipulations as follows:
1. New resolution reflects the term of one year, and includes a 60-day cancellation clause.
2. The revised Management Agreement reflects the new term on pages 1 (3rd Whereas) and 3
(TERM).
3. The revised Management Agreement reflects the 60-day cancellation clause on page 3
(TERM) and page 10, Section 15.2 Termination for Convenience!....
4. The inspection reports requirement is included on page 7, Section 12.2 Maintenance, second
paragraph.
Also attached, please find copies of the agenda item as it was presented at the May 7, 1999 City
Commission meeting and a copy of the After Action as prepared by Robert Parcher, City Clerk.
Please review the documents, make any revisions necessary and retum them to my attention for
processing. Should you require additional information, please advise.
c: Mayra Diaz Buttacavoli, Assistant City Manager (memo only)
Janet Gavarrete, Assistant City Manager (memo only)
Robert Parcher. City Clerk (memo only)
KSI eb F:IRCPAI$ALLIKEVIN\HART2.MEM
CITY OF MIAMI BEACH
CCTV HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
CONINIISSIONTIERIORANDtiNiNO. 3~-'7-~ J
TO: Mavor Neisen O. Kasdin and DA'Z'E: 11Iap 12, 1999
Members of the Cih• C mission
FROM: Sergio Rodriguez
City ?Manager
SUBJECT: A RESOLirl'I ~ OF THE A1AY'OR rLyll CITY COAZMISSION OF THE CITY' OF
AIiAAII BEACH, FLORIDA, APPROVING, BY 5/7THS VOTE, A YY`AIVER OF
COMPETITIVE BIDllING, AI~~ HF.RF.Ifi AUTHORIZING THE YIAYOR AND
CITY' CLERK TO EXECUTE A MANAGEMENT AGREEl•4ENT YYTTH CHt?CK
ILART 1ViANAGEMENT GROttp, INC., TO PROVIDE PROFESSIONAL
SERVICES FOR MANAGEMENT' OF THE CITY'S GOLF COtiRSES; SAID
AGRF,EAIENT CODIMENCING ON OCTOBER 1,1999, ANll CONCLLIDING ON
SEPTEMBER 30, 2001, YVITH AN OPTION TO RENEYV FOR'TIIREE YF..ARS,
ON A YEAR-TO-YE.AR BASIS.
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
BAC GROi ND:
In 1996, when the City's agreement ~~~th the American Golf Corporation was scheduled for renewal, the
Ciri• Commission and the Administration determined that the level of maintenance and senice being
provided did not meet the contractually required standards. As a result, the City exercised its option not
to renew the agreement. Followvtg the decision not to renew this agreement, the City:
• Evaluated the conditions of the golf courses and clubhouses to determine what improvements
could be completed at each course. The Cii• decided that the golCcourses and clubhouses should
be renovated and in the interim issued an RFP to obtain a qualified firm to manage and operate the
golf courses for a three (3) year period while the restoration process took place.
• On June 14; ] 996, a Request For Proposals (RFP No. 116-95196) was issued seeking professional
services for an operator to manage and maintain the Uolf Courses. The RFP v`~th specifications
was mailed to fifty (50} prospective proposers and on July 5, 1996, three (3) proposals were
received.
• Un July 11, 1996, an evaluation committee, comprised of representatives from the Golf Course
Ad IIoc Committee, Golf Advisory Boazd and the Administration, recommended the Chuck Hart
Management Group, Inc. as the first-ranked proposer to the Cit<~ Alanager.
583 AGENDA ITEbf ~~ F
UATE~~
On September 1 I ,1996, the City Commission authorized the administration to enter into a contract
with the Chuck IIart Management Group, Inc. for the professional management services of the
City`s golf courses tier a three (3) year term that will conclude on September .i0, 1999.
On October 8, 1997, the firm Arthur Bills and Associates, Boll'course architects, was selected to
prepare the schematic phase for the renovations andror restoration of the Citys courses. The
Arthur Hills report indicated the renovation~redesign of the City's golf courses Baas behveen $3.3
million and $4.'? million for Bayshore, depending on the implementation of Plan A or Plan B,
$48 ±,000 for Par 3 and $3. , million for Normandy Shores' Plan A. This is exclusive of the
clubhouse construction' improvements costs, environmental clean-up costs or relocation of city
facilities, or the stash site.
On November 4, 1998, the City Commission authorized the execution of an agreement with the
firm of ERA (Economic Research Associates) for the development of an analysis of the City of
Miami Beach public golf coarse system and evaluation of future development alternatives and
market and financial potential.
On Januar} 6, 1999, the Cin~ Commission authorized the execution of an agreement with the fine
of REG Architects, Inc. for architecturaUengineering services for the redesign and/or renovation
of the Bayshore/Paz 3 and Normandy Shores clubhouses and related facilities. 'Phis study is to be
completed near the end of April, 1999. VI%hen complete, this information, added to the Arthur hills
report, will provide the City with a clear cost projection fot the restoration of the golf courses.
On February 2>, 1999, the results of the study prepazed by ER:~ were presented and discussed at
the Finance & Citywide Projects Committee meeting. The Committee's recommendation was
subsequently Y'orwazded to the full City Commission on March 3, ] 999. At the meeting, the City
Commission discussed the possibility of putting a general obligation bond for the golf courses on
the ballot. The Administration was also directed to review all the costs that were identified in the
two alternatives developed by the Economic Reseazch Associates including the cost of relocation
of the stash site, Public Works' Pipe Storage site and the Parks Maintenance }'azd. These costs
were to be refined and reported back to the Finance and Citywide Projects Committee by June of
1999.
At this time, the determination of exactly how the City intends to proceed with the restoration of the golf
courses and clubhouses has not been resolved. Once the ultimate solutions are defmcd, the bidding and
construction period for each course is estimated to be a minimum of fifteen (1 S) months. In the interim,
the courses must continue to operate to serve our residents, tourists and guests.
AI~TALYSIS
In the period of time the Hart Group has managed the City's golf courses, the maintenance and services
have been found to meet the terms and conditions of the existing agreement. it is the Administration's
opinion that should the management and operations of the golf courses be re-bid prior to the completion
of the improvements, the City may loose revenues and/or quality in the level of the golf course
maintenance and services. In response to this concern, the Administration discussed the option of entering
into a new agreement with the Chuck Hart Management Group, Inc. for a period not to exceed nro (2)
years, with a three year renew option on a yeaz-to-year basis, under the terms and conditions ultimately
negotiated in the attached agreement. Please refer to Attachment A.
584
Following aze the salient points of the proposed agreement:
1. The total annual real for the agreement will be S?94.000 per year. Said rent shall be paid in
accordance with the schedule included in Exhibit A of the Agreement. Compensation to the City
will be increased b}' $5.600 per month. fir a total of $4.i,?UO annually to compensate the City fbr
the cost of renting modular clubhouses insT<•tlled at Bayshore.
2. The Fec Rates Schedule, as delineated in Exhibit B of the Agreement will remain constant, as it
has lirr the past eight (8) years, with the exception of the maximum tee charged to non-resident
players. Kesidents fees will remain the same. The Hart Ciroup has requested the ability to charge
rates that will pemtit ll~em to remain competitive with the local municipal golf course mazket. In
ardor to accomplish this, the Hart Group has requested the following adjustments:
z shore
Mav 1 thru November 15 From: $35.00 to SSU.UO
November 1(, thru April 30 From: 555.00 to $75.00
Nort 'tl~tdv
Nlav 1 thru November I S From: S35A0 to $50.00
\ovemlxr 16 thru April 30 From: $45.00 to $SS.UO
The fees as proposed by the Hart Uroup are well within the range of the rates and considered comparable
with the fees being charged by other golf courses operating in h4iami-Dade County. This is documented
in the recent analysis of the City of'~4iami Beach Public Golf Course System prepazed by Economics
Research .associates. Please review to attachment B -Table V"I-2 Greens and Cart Fees at Selected
Public Relevant Public-Access Golf Courses In the Regional Golf Market for an overview of local greens
fees.
3. In the initial agreement with the Hart Group, there was a section that permitted a maximum
allowance in the amount of $90,000 per year for the purchase and;'or lease~purchase of equipment
for operation and maintettance of the premises throughout the term of the agreement. Said
maximum allowance was deducted from the rent paid to the Cin°. The agreement further stated
that if the lease:'purchase agreement for the equipment acquired by the Hart Group extends beyond
the duration of the Agreement. the City, at its sole option. has the right to either purchase such
equipment (in the event of a lease.'purchase agreement), or assume the lease on the same terms and
conditions originally made available to the Hart Group. upon the commencement of the
:agreement, the Hart Group entered into an equipment least agreement for a five (5) year period.
This lease agreement ~~ill conclude in 2001. The annual allowance credit will be concluded at that
time and the City will have the option to purchase the equipment at a maximum cost. estimated
at this time to be a fair mazket value of $34,'_50; or decide not to exercise this option.
The Hart Group has also expended in excess of S71,300 on improvements to the golf courses not
stipulated in their agreement but they deemed important for the betterment of the facilities. Please refer
to Attachment L for a summate of improvements. (1'he color photographs referenced in Ivir. Hart's ?~1ay
3, 1999 correspondence will be distributed for review at the Commission meeting).
585
At its meeting of'~4arch 4, 1999, the City's Golf .Advisory Board members expressed their overall
satisfaction with the conditions of the golf courses, the level of services, as well as the Hart Group's
management of the courses and voted unanimous]y to recommend the City enter into another agreement
with them. It should also be noted that althou,h no formal vote was taken, the A4ayor`s Ad Hoc Ciolf
Committee has previously supported dte renewallcontinuation of the Hart Agreement based on the
conditions of the golf courses and the utilatowat variables that might impact another qualified operator
from submitting a bid respmtse such as when will the cottrses be closed for renovations. how long each
course may be closed for restorations and the City's intention to re-bid the golf course operations when
each course is completed. -
1'he execution of this agreement w~a_s originally discussed at the April 14. 1999 Commission meeting.
At that time the Commission requested it be deferred until the Dlay 12; 1999 meeting and instructed the
:administration to prepare an item for the May ]'', 1999 agenda that clearly delinea[es options for
comprehensively fmancin, aztd renovating the golf courses and clubhouses and provides potential sites
for the relocation of the City's stash site. ParksiLandscape \~taintcnance yard, and the Public Works pipe
storage site all located on the Bayshore golf course. The Commission also requested that a copy of the
most recent Independent Auditor's Report fi>r the Chuck Hart Aanagement Group, [nc. that documented
payments made to the City be provided. in response to this nquzst please see Attachment ll for a copy
of the Financial Statements for the periods ending September 30, 1998 and 1997 as prepared by
Bustamante Nunez & Company, Certified Public Accountants. This has also been verified by the Finance
Department which has established that the Hart Group has made the required payments on time.
Additionally, in subsequent discussions with the Administration since the April 14.1999 presentation of
this item, the Hart Group has agreed to assume the responsibility for the frill maintenance of the City's
swale abutting the Bayshore Golf Course. This includes, but is not limited to, the cutting of the grass,
trimming of the sod. hedges and trees, fertilization oY all materials and the planting and maintenance of
the flower beds including the replanting three times per year. The total annual cost estimate for this
service is 568,744. Please refer to .Attachment E -Bayshore Golf Cottrse Yearly Landscape Maintenance
Costs 1998:`99 prepared be the Parks Department for a comprehensive overview of services included in
cost.
Also, attached are copies of the most recent ir~spections of the golf courses conducted by the Parks
Administration. As noted at the time of the inspection (4!27 and 4'28), Bayshore was found to be in an
overall fair to average condition and Normand} Shores in an overall good condition. Please refer to
Attachment F for referenced copies.
It is the Administration's opinion that due to the uncertaint}• of the future renovation plans for the golf course
facilities. and the fact that the agreement clearly stipulates that upon implementation of the
renovationsireconstruction of acourse, the agreement for the management of the particular course in question
is terminated, it will be vzq difficult to attract other potential management firms to bid on this service and
that to re-bid the management and operations of the Cit}•'s golf courses until they are renovated may result
in loss of revenue. or quality of'serviccs currently being provided. Therefore, this plan of action is considered
to he in the best interest of the City until the golf course improvements are completed.
CONCL ?Si i()1\
,Approve the`at~tached Resolution.
sR•rwn s"
T: ~AGf T UA'~, t 999'u~IAY 1299'~.REGLtL>R'•.I 1:1RTAGV_'. \1 (? M
586