HomeMy WebLinkAboutcover memoCITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
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TO :
FROM :
The Honorable Mayor and Members PATE : APR - 4 2004
of the,-€4ty Comn}t ion
Joe Rijola
Chie ministrator / City Manager
FILE :
SUBJECT : First Source Hiring Agreement between
the City & Flagstone Island Gardens
REFERENCES:
ENCLOSURES:
RECOMMENDATION:
The administration recommends that the City Commission adopt the attached Resolution
authorizing the City Manager to execute a First Source Hiring Community Benefits Program
Agreement ("First Source Agreement"), in substantially the attached form, with Flagstone Island
Gardens ("Flagstone"), to enhance the local community involvement in the project by providing
participation in training, construction and operation of the project by low-income individual
residents of the City of Miami and Miami -Dade County.
BACKGROUND:
Pursuant to the City of Miami Charter, on December 14, 2000 the City Commission adopted
Resolution No. 00-1081, which authorized the issuance of a Mega -Yacht Marina and Mixed Use
Waterfront Development Opportunity -Watson Island, Request for Proposals, for the development
of approximately 10.79 acres of upland and 13.35 acres of submerged land on Watson Island.
Three proposals were received in response to the RFP and following an extensive review process,
the proposal of Flagstone was selected as the successful proposer. Flagstone's proposal was
approved by voter referendum by the electorate of the City of Miami on November 6, 2001 and
the election results were accepted by the City Commission on November 15, 2001 by Resolution
01-1198. Flagstone's proposal contemplates that the project will include, but not necessarily be
limited to, construction of a mega -yacht marina, a 4 and 5 star hotel, retail space, and parking
garage, together with certain other amenities. Their proposal further proffered the creation of a
skills training center and a first source hiring agreement, which required Flagstone to proceed
diligently in offering jobs and providing to low income residents of Miami and Miami -Dade
County.
The City and Flagstone subsequently entered into an Agreement to Enter Into Ground Lease,
dated January 1, 2003, consistent in all material respects with the Watson Island RFP and
Flagstone proposal. The Agreement to Enter Into Ground Lease sets forth certain conditions that
must be met for the future execution of a long-term ground lease ("Lease") with Flagstone.
Section 4.2.4 of the Agreement to Enter Into Ground Lease requires the parties to execute a First
Source Agreement acceptable to both parties.
Honorable Mayor and Members
Of the City Commission
Page 2
In accordance with the First Source Agreement, the City is an intended third -party beneficiary of
contracts and other agreements, which incorporates this First Source Agreement, with regard to
the terms. The City shall therefore have the right to enforce the provisions of this First Source
Agreement against all parties incorporating this First Source Agreement into contracts or other
agreements.
Flagstone shall work with the South Florida Workforce (the "Agency") or a similar entity
acceptable to the City Manager capable of handling the responsibilities designated to the Agency
pursuant to the First Source Agreement. The First Source Agreement shall require each
participant to offer job vacancies generated by the project during the lease term, and based on
qualifications, first to residents of the Overtown area, second to City of Miami residents and third
to residents of Miami -Dade County. The First Source Agreement requires Flagstone to not
execute any Construction Contract or Major Sublease, except for retail use, of or any portion of
the Site, unless the First Source Agreement, is acknowledged to have been received and agreed to
be complied with by the Contractors and/or Business Users.
In addition to the hiring hierarchy stated above, the First Source Agreement will require
Flagstone to establish a Skills Training Program with the purpose of teaching individuals
marketable construction skills for this and other future projects. The First Source Agreement has
the goal of training a minimum of ten (10) percent of the entire anticipated On -Site Project
construction workforce. The requirement for participation in the program will be included in
each Construction Contract executed between the Contractor and Sub -Contractors and Flagstone.
The First Source Agreement also requires Flagstone to develop a Career Training Program to
provide accredited coursework in Retail Management, Leisure Management, Customer Service,
and basic educational high school diploma skills and focus on developing alliances with
organizations with the City to produce educational programs for all employees of the project.
With respect to Business Operations, the First Source Agreement provides for Flagstone to offer
or cause to be offered, employment to a minimum of twenty-five (25) percent of all the initial
Full Time Employee job openings or seventy-five (75) percent of individuals who successfully
complete the Career Training Program, whichever is greater.
Honorable Mayor and Members
Of the City Commission
Page 3
The City and Flagstone have agreed upon the point system described in Exhibit "B" of the First
Source Agreement to monitor Flagstone's performance. Target levels are set for a ninety-five
(95) percent performance, however, Flagstone shall not be deemed to be non -performing unless
or until Flagstone is below a seventy-five (75) percent threshold. If the City determines that
Flagstone has not met the performance levels stipulated in the First Source Agreement, the City
agrees to provide Flagstone with a Notice of Non -Compliance specifying the points of non-
compliance and the terms to cure. Flagstone shall have a thirty (30) day cure period with
possible extension provided Flagstone promptly commences cure and diligently continues to
pursue such cure. Any excess of the ninety-five (95) percent performance will be cumulative and
allowed to carry over to future years. This First Source Agreement shall remain in effect for as
long as Flagstone remains in control of the Project or for ten years from the Occupancy date,
whichever comes Iater.
It is recommended that the City execute the First Source Agreement pursuant to the terms of the
Agreement to Enter Into Ground Lease.
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