Item Coversheet

Resolutions - C7  A




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:July  2, 2018
 



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 AMENDMENT NO. 12 TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND JONES LANG LASALLE AMERICAS, INC. (AS ASSIGNEE OF STRATEGIC ADVISORY GROUP), FOR CONSULTING SERVICES RELATIVE TO THE CONVENTION CENTER HEADQUARTER HOTEL REQUEST FOR PROPOSALS AND LEASE AGREEMENT, IN AN AMOUNT NOT TO EXCEED $100,000, INCLUDING REIMBURSABLE EXPENSES.

RECOMMENDATION

The Administration recommends adopting the Resolution.

ANALYSIS

On October 19, 2011, the City Commission authorized the Mayor and City Clerk to enter into an Agreement with Strategic Advisory Group (SAG) for consulting 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. 22-11/12 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 “2012 RFQ”).

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.

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.   

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 and Expansion 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 the Commission’s February 12, 2014 directive, covering all of SAG’s services from the beginning of the design-build RFQ process through the anticipated selection of a Design-Builder in 2015 and execution of a Design-Build Agreement.

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.

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 Convention Center Renovation and Expansion Project (the “Project”) under a Construction Manager-at-Risk project delivery method. 

On May 20, 2015, the Commission authorized Amendment No. 7, which provides for SAG’s continuing services related to the Project during pre-construction phase, 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.

On October 21, 2015, the Commission authorized Amendment No. 8 providing 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 for $300,000; 2) an extension of SAG’s asset management services through March 31, 2017 for $160,000; and 3) an extension of SAG’s services relative to the Convention Center Headquarter Hotel for $240,000, contingent upon voter approval of the Hotel project in a special election held on March 15, 2016. As the voter referendum for the Hotel Project was not approved by the voters, the services relative to the Convention Center Hotel were not authorized, and the associated fees in the amount of $240,000 were not incurred or expended.

On January 29, 2016, Jones Lang LaSalle Americas, Inc. (“JLL”) closed its acquisition of the assets of Strategic Advisory Group (“SAG”), and the Professional Services Agreement between SAG and the City of Miami Beach was assigned to JLL accordingly.

On June 30, 2017, Amendment No. 9 was approved for continuing services relative to the Convention Center Renovation and Expansion Project through July 31, 2018 in an amount not to exceed $160,000, pursuant to the City Manager’s authority under Resolution 2105-29115.

On December 13, 2017, the City Commission authorized the Mayor and City Clerk to execute Amendment No. 10 for additional asset management services in an amount not to exceed $60,000.

On June 6, 2018, the City Commission authorized the Mayor and City Clerk to execute Amendment No. 11 for additional asset management services for the period of June 30, 2018 through January 30, 2019, in an amount not to exceed $67,000.

On May 16, 2018, the Mayor and City Commission approved the issuance of a Request for Proposals (the “RFP”) for a Development and Ground Lease Agreement for a Convention Center Headquarter Hotel. Amendment No 12 is for additional consulting services in an amount not to exceed $100,000, including reimbursable expenses, in connection with the City’s solicitation process for the Hotel RFP issued on May 17, 2018, and includes financial and hotel consulting services related to the negotiation of the Development and Ground Lease Agreement for the Hotel Project.

CONCLUSION

The Administration recommends approval of Amendment No. 12 to the Professional Services Agreement between the City of Miami Beach and Jones Lang Lasalle Americas, Inc. (as assignee of Strategic Advisory Group), for consulting services relative to the Convention Center Headquarter Hotel Request for Proposals and proposed Development and Ground Lease Agreement, in an amount not-to-exceed $100,000.00, including reimbursable expenses.

KEY INTENDED OUTCOMES SUPPORTED
Maximize The Miami Beach Brand As A World Class Destination

FINANCIAL INFORMATION

Fund 165 - RDA - Lowes / Royal Palm
Amount 1$100,000Account 1165-0821-061357-00-410-552-00-00-00-28140
Total$100,000
Legislative Tracking
Office of the City Manager

ATTACHMENTS:
Description
Resolution
JLL Amendment No. 12