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HomeMy WebLinkAboutAgenda Item Summary Form1IV OF 3 AGENDA ITEM SUMMARY FORM File ID: #8360 �) ;,moo x i 9 Date: 12/11/2020 Requesting Department: Department of Real Estate and Asset Management Commission Meeting Date: 01/14/2021 Sponsored By: District Impacted: District 2 Type: Resolution Subject: Bid Waiver - Olympia Theater Purpose of Item: A Resolution of the Miami City Commission by a four -fifths (4/5ths) affirmative vote, after an advertised public hearing, ratifying, confirming, and approving the City Manager's recommendation and written findings, attached and incorporated as Exhibit "A", pursuant to Section 18-85(a) of the Code of the City of Miami, Florida, as amended; waiving the requirements for competitive sealed bidding methods as not being practicable or advantageous to the City of Miami ("City") for the provision of management and leasing services by NAI Miami Property Management, LLC ("NAI"), as approved by City Commission; authorizing the City Manager to negotiate and execute a temporary management agreement ("Management Agreement"), in a form acceptable to the City Attorney, between the City of Miami ("City") and NAI, whereby NAI shall manage and lease the residential apartments and retail components, and provide caretaker services of the theater component, of the City -owned property located at 174 East Flagler Street, Miami, Florida, and known as the Olympia Theater, as more particularly described in the NAI Proposal, for a management fee to be negotiated, but in no event greater than the amount provided in the NAI Proposal, and including a ninety -day option to terminate; further authorizing the City Manager to negotiate and execute all other documents, including any amendments, renewals, and extensions subject to allocations, appropriations and budgetary approval having been previously made, and in compliance with applicable provisions of the Code of the City of Miami, Florida, as amended, ("City Code"), including, the City of Miami's Procurement Ordinance, Anti -deficiency Act, and Financial Integrity Principles, all as set forth in Chapter 18 of the City Code, in a form acceptable to the City Attorney, and in compliance with applicable regulations, as may be necessary for said purpose. Background of Item: The City of Miami ("City") owns the property located at 174 East Flagler Street, Miami, Florida and known as the Gusman Theater for the Performing Arts of the Olympia Building ("Property"). The Property is made up of a theater, residential apartments, and commercial retail. The theater component of the Property is currently managed by Olympia Center, Inc., a Florida Not -For -Profit corporation ("Theater Component"). The residential apartments and commercial retail are also currently managed by Olympia Center, Inc. by separate management agreement ("Residential and Retail Component"). On August 20, 2020, the City advised Olympia Center, Inc. of its intent to terminate both of the above -referenced management agreements between Olympia Center, Inc. and the City, and the same was accepted by Olympia Center, Inc. on September 2, 2020. Pursuant to the agreed -upon termination, the management agreements shall be terminated effective December 31, 2020. NAI Miami Property Management, LLC ("NAI") is a full service real estate firm serving as the Greater Miami Metropolitan and Florida Keys market representative of NAI Global, an international real estate services organization. Among the various services provided by NAI are leasing brokerage and property management services. The City and the Miami Parking Authority currently utilize NAI for real estate leasing brokerage and property management services at several properties. NAI has submitted a proposal to provide similar services for the management of the Property, pursuant to the terms proposed therein ("NAI Proposal"). The City Manager has determined that it is not practicable or advantageous for the City of Miami ("City") to adhere to competitive sealed bidding methods for the provision of information and emergency kiosks and, therefore, seeks a bid waiver for such requirements. Due to the termination of the existing management agreements with Olympia Center, Inc., and the urgent and crucial need to continue the operation and management of the historic Property, it is in the best interest of the City to negotiate a temporary management agreement with NAI. The City wishes to negotiate a management agreement ("Agreement") with NAI for the temporary management of the Property until such time that the City elects to proceed with the award of a solicitation for the long-term management of the Property. The Agreement shall be on a month -to -month basis and shall be terminable at -will by the City, in its sole discretion, with ninety (90) days' notice. The scope of services to be provided in the Agreement will include the management and leasing of the Residential and Retail Component, and caretaker services to maintain the Theater Component, but not to operate the same unless a qualified and reputable third -party theater manager is otherwise procured by NAI. All construction management services provided in connection with the Agreement shall be subject to the prior written approval of the City Manager or his designee, in his sole discretion. The fee structure and amount shall be negotiated by the City and NAI for the management and leasing of the Residential and Retail Component, and the caretaker services for the Theater Component of the Property, and may further include, as applicable: management fees; leasing fees; staffing, personnel, and out of pocket expenses; and fees associated with required construction projects, but in no event shall exceed the amounts proposed in the NAI Proposal. Pursuant to Section 18-85(a) of the City Code, the City Manager has waived competitive sealed bidding methods via a written finding with reasons supporting the same. Said bid waiver requires ratification, confirmation, and approval by the City Commission by a four -fifths (4/5ths) affirmative vote after an advertised public hearing. Budget Impact Analysis Item is NOT Related to Revenue Item is an Expenditure Item is NOT funded by Bonds Total Fiscal Impact: Estimated at $63,000 for the first year and $60,000 per year thereafter General Account No: TBD Reviewed By Department of Procurement Carolina Aguila Department of Real Estate and Asset Management Review Completed 12/21/2020 9:32 AM Department of Risk Management Ann -Marie Sharpe Office of Management and Budget Pedro Lacret Office of Management and Budget Leon P Michel City Manager's Office Fernando Casamayor Legislative Division Valentin J Alvarez City Manager's Office Arthur Noriega V Office of the City Attorney Daniel Diaz Office of the City Attorney Barnaby L. Min Office of the City Attorney Victoria Mendez City Commission Nicole Ewan Office of the City Clerk City Clerk's Office Procurement Review Skipped 12/11/2020 12:51 PM Anthony Barcena Department Head Risk Review Completed 12/21/2020 9:42 AM Budget Analyst Review Completed 12/22/2020 12:00 PM Budget Review Completed 12/22/2020 8:21 PM Assistant City Manager Review Completed 12/23/2020 4:19 PM Legislative Division Review Completed 12/24/2020 8:42 AM City Manager Review Completed 12/24/2020 10:28 AM ACA Review Completed 01/04/2021 4:08 PM Deputy City Attorney Review Completed 01/05/2021 12:14 PM Approved Form and Correctness Completed 01/05/2021 5:58 PM Meeting Completed 01/14/2021 9:00 AM Rendered Completed 01/19/2021 3:50 PM �tzY,°v City of Miami City Hall " * `IIL111 IIATtA k ' „ 11 Legislation 3500 Pan American Drive Miami, FL 33133 r R % www.miamigov.com Resolution Enactment Number: R-21-0016 File Number: 8360 Final Action Date:1/14/2021 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), BY A FOUR -FIFTHS (4/5THS) AFFIRMATIVE VOTE, AFTER AN ADVERTISED PUBLIC HEARING, RATIFYING, CONFIRMING, AND APPROVING THE CITY MANAGER'S RECOMMENDATION AND WRITTEN FINDINGS, ATTACHED AND INCORPORATED AS EXHIBIT "A," PURSUANT TO SECTION 18-85(A) OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CITY CODE"), AND WAIVING THE REQUIREMENTS FOR COMPETITIVE SEALED BIDDING METHODS AS NOT BEING PRACTICABLE OR ADVANTAGEOUS TO THE CITY OF MIAMI ("CITY") FOR THE PROVISION OF MANAGEMENT AND LEASING SERVICES BY NAI MIAMI PROPERTY MANAGEMENT, LLC ("NAI"), FOR THE CITY -OWNED PROPERTY LOCATED AT 174 EAST FLAGLER STREET, MIAMI, FLORIDA, AND KNOWN AS THE OLYMPIA BUILDING; AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A TEMPORARY MANAGEMENT AGREEMENT ("MANAGEMENT AGREEMENT"), IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, BETWEEN THE CITY AND NAI, WHEREBY NAI SHALL MANAGE AND LEASE THE RESIDENTIAL APARTMENTS AND RETAIL COMPONENTS AND PROVIDE CARETAKING SERVICES OF THE OLYMPIA THEATER, AS MORE PARTICULARLY DESCRIBED IN THE NAI PROPOSAL, FOR A MANAGEMENT FEE TO BE NEGOTIATED, BUT IN NO EVENT GREATER THAN THE AMOUNT PROVIDED IN THE NAI PROPOSAL, AND TERMINABLE AT -WILL BY THE CITY, IN ITS SOLE DISCRETION, WITH NINETY (90) DAYS' NOTICE; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ANY AND ALL OTHER NECESSARY DOCUMENTS, INCLUDING ANY AMENDMENTS, RENEWALS, AND EXTENSIONS TO THE MANAGEMENT AGREEMENT, ALL IN FORMS ACCEPTABLE TO THE CITY ATTORNEY, AND SUBJECT TO ALL ALLOCATIONS, APPROPRIATIONS, PRIOR BUDGETARY APPROVALS, COMPLIANCE WITH ALL APPLICABLE PROVISIONS OF THE CITY CODE, THE ANTI -DEFICIENCY ACT, FINANCIAL INTEGRITY PRINCIPLES, AND ALL APPLICABLE LAWS, RULES, AND REGULATIONS. WHEREAS, the City of Miami ("City") owns the property located at 174 East Flagler Street, Miami, Florida, known as the Olympia Building ("Property"); and WHEREAS, the Property is composed of a theater, residential apartments, and commercial retail establishments; and WHEREAS, the theater component of the Property ("Theater Component") is currently managed by Olympia Center, Inc., a Florida Not -For -Profit corporation ("Olympia Center'), through a management agreement ("Theater Agreement"); and WHEREAS, the residential apartments and commercial retail establishments ("Residential and Retail Components") are also currently managed by Olympia Center pursuant to a separate management agreement ("Residential and Retail Management Agreement"); and WHEREAS, on August 20, 2020, the City advised Olympia Center of its intent to terminate both of the above -mentioned management agreements and the same was accepted by Olympia Center on September 2, 2020; and WHEREAS, the management agreements terminated on December 31, 2020; and WHEREAS, NAI Miami Property Management, LLC ("NAI") is a full -service real estate firm serving as the Greater Miami Metropolitan and Florida Keys Market Representative of NAI Global, an international real estate services organization; and WHEREAS, among the various services provided by NAI are leasing brokerage and property management services; and WHEREAS, the City and the Miami Parking Authority currently utilize NAI for real estate leasing brokerage and property management services at several municipal properties; and WHEREAS, NAI has submitted a proposal to provide similar services for the management of the Property ("NAI Proposal"); and WHEREAS, due to the termination of the existing management agreements with Olympia Center and the urgent and crucial need to continue the operation and management of the Property, it is in the best interest of the City to negotiate and execute a temporary management agreement with NAI for the management of the Property until such time that the City elects to proceed with the award of a solicitation for the long-term management of the Property ("Agreement"); and WHEREAS, the Agreement shall be terminable at -will by the City, in its sole discretion, with ninety (90) days' notice; and WHEREAS, the scope of services to be provided in the Agreement will include the management and leasing of the Residential and Retail Components and caretaking services to maintain the Theater Component; and WHEREAS, the City may authorize NAI to hire a qualified and reputable third -party theater manager in the City's sole discretion; and WHEREAS, all construction management services provided in connection with the Agreement shall be subject to the prior written approval of the City Manager, in his sole discretion; and WHEREAS, the fee structure and amount shall be negotiated by the City and NAI for the management and leasing of the Residential and Retail Components and the caretaking services for the Theater Component of the Property and may further include, as applicable, management fees; leasing fees; staffing, personnel, and out-of-pocket expenses; and fees associated with required construction projects, but in no event shall exceed the amounts proposed in the NAI Proposal; and WHEREAS, pursuant to Section 18-85(a) of the Code of the City of Miami, Florida, as amended ("City Code"), the City Manager has waived competitive sealed bidding methods via a written finding stating that such a waiver is in the best interests of the City; and WHEREAS, said bid waiver requires ratification, confirmation, and approval by the City Commission by a four -fifths (4/5ths) affirmative vote after an advertised public hearing; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as fully set forth in this Section. Section 2. By a four -fifths (4/5ths) affirmative vote, after an advertised public hearing and pursuant to Section 18-85(a) of the City Code, the City Manager's recommendation and written findings, attached hereto and incorporated as Exhibit "A," waiving the requirements for competitive sealed bidding methods as not being practicable or advantageous to the City for the provision of temporary management and leasing services with NAI are ratified, confirmed, and approved. Section 3. The City Manager is authorized' to negotiate and execute an Agreement between the City and NAI, in a form acceptable to the City Attorney, whereby NAI shall temporarily manage and lease the Residential and Retail Components and provide caretaking services for the Theater Component at the Property, as more particularly described in the NAI Proposal, for a management fee to be negotiated, but in no event greater than the amount provided in the NAI Proposal, and terminable at -will by the City, in its sole discretion, with ninety (90) days' notice. Section 4. The City Manager is further authorized' to negotiate and execute any and all other necessary documents, including any amendments, renewals, and extensions, all in forms acceptable to the City Attorney, and subject to all allocations, appropriations, prior budgetary approvals, compliance with all applicable provisions of the City Code, the Anti -Deficiency Act, and Financial Integrity Principles, and with all applicable laws, rules, and regulations. Section 5. This Resolution shall become effective immediately upon adoption. APPROVED AS TO FORM AND CORRECTNESS: 1 "na dez, City tutor iey 1/5/2021 Pursuant to the resolution, this item became effective immediately upon adoption by the Commission. ' The herein authorization is further subject to compliance with all legal requirements that may be imposed, including but not limited to those prescribed by applicable City Charter and City Code provisions.