Broward County Commission Regular Meeting

A. MOTION TO APPROVE business terms as set forth on Exhibit 1, which are included in the draft of the Master Development Agreement (referenced below), and authorizing the County Administrator to negotiate final terms for the open business issues set forth on Exhibit 2 for inclusion in the Master Development Agreement, with such final terms subject to review and approval as to legal sufficiency by the Office of the County Attorney.

ACTION:  (T-11:49 AM)  Approved.  (Scrivener's Error - See County Administrator's Report:  Summary Explanation/Background, 6th paragraph currently reads:...provides for the continuation of the Convention Center's west expansion through the 50% construction documents....and should read:...provides for the continuation of the Convention Center's west expansion through 90% construction documents...)  (Refer to minutes for full discussion.)

VOTE: 8-0.  Vice-Mayor Holness was inaudible during the vote.

ACTION:  (T-1:45 PM)  Vice-Mayor Holness telephonically requested being shown voting in the affirmative.

VOTE: 9-0.

B. MOTION TO APPROVE Master Development Agreement Between Broward County and Matthews Holdings Southwest, Inc., (MSW) for the Convention Center Expansion and Headquarters Hotel Project (RFP No. N1337414R3) in substantially the form attached as Exhibit 3, in an amount not to exceed $12,591,404 for the Initial Guaranteed Maximum Price (GMP), which covers convention center utility relocations; authorizing the County Administrator to include the newly-negotiated terms (as referenced in Exhibit 2) provided they do not contradict any terms set forth on Exhibit 1 or commit the County to any amount in excess of the sum stated in Motion B; and authorizing the County Administrator to execute the final Master Development Agreement on behalf of Broward County provided it has been reviewed and approved as to legal sufficiency by the Office of the County Attorney.

ACTION:  (T-11:49 AM)  Approved.  (Scrivener's Error - See County Administrator's Report:  Summary Explanation/Background, 6th paragraph currently reads:...provides for the continuation of the Convention Center's west expansion through the 50% construction documents....and should read:...provides for the continuation of the Convention Center's west expansion through 90% construction documents...)  (Refer to minutes for full discussion.)

VOTE: 8-0.  Vice-Mayor Holness was inaudible during the vote.

ACTION:  (T-1:45 PM)  Vice-Mayor Holness requested being shown voting in the affirmative.

VOTE: 9-0.

C. MOTION TO APPROVE Second Amendment to the amended and restated design agreement between Broward County and Matthews Holdings Southwest, Inc., in substantially the form attached as Exhibit 4, to continue the design services required for the Convention Center Expansion and Headquarters Hotel Project, Request for Proposals (RFP) No. R1324608P1, increasing the basic services fee by $16,577,455 from $9,038,859 to $25,616,314, making no change to the existing $786,944 fee for stipulated additional services, increasing the potential optional services fee by $1,279,926 from $3,525,450 to $4,805,376 and increasing the potential amount of reimbursable expenses by $1,657,746 from $1,428,027 to $3,085,773; thereby increasing the total fee amount from $14,779,280 to $34,294,406; authorizing the County Administrator to negotiate the remaining terms provided they do not commit the County to any amount in excess of the sums stated in this Part C; and authorizing the County Administrator to execute the final agreement on behalf of Broward County provided it has been reviewed and approved as to legal sufficiency by the Office of the County Attorney.

ACTION:  (T-11:49 AM)  Approved.  (Scrivener's Error - See County Administrator's Report:  Summary Explanation/Background, 6th paragraph currently reads:...provides for the continuation of the Convention Center's west expansion through the 50% construction documents....and should read:...provides for the continuation of the Convention Center's west expansion through 90% construction documents...)  (Refer to minutes for full discussion.)

VOTE: 8-0.  Vice-Mayor Holness was inaudible during the vote.

ACTION:  (T-1:45 PM)  Vice-Mayor Holness requested being shown voting in the affirmative.

VOTE: 9-0.

D. MOTION TO ADOPT budget Resolution No. 2019-320 within the General Capital Outlay Fund transferring from the reserve in the amount of $12,000,000 to fund the hotel design fees included in the second amendment of the Design Services Agreement.

ACTION:  (T-11:49 AM)  Approved.  (Scrivener's Error - See County Administrator's Report:  Summary Explanation/Background, 6th paragraph currently reads:...provides for the continuation of the Convention Center's west expansion through the 50% construction documents....and should read:...provides for the continuation of the Convention Center's west expansion through 90% construction documents...)  (Refer to minutes for full discussion.)

VOTE: 8-0.  Vice-Mayor Holness was inaudible during the vote.

ACTION:  (T-1:45 PM)  Vice-Mayor Holness requested being shown voting in the affirmative.

VOTE: 9-0.

MOTION A: Informs of outstanding issues to be negotiated for completion of the Development Agreement.

MOTION B: Provides the terms and conditions included in the Agreement except those outstanding.

MOTION C: In accordance with the Broward County Procurement Code, Section 21.94.a, amendments to agreements exceeding the award authority of the Director of Purchasing must be approved by the Board.

MOTION D: Transfers from reserves requires approval by the Board.

MOTION A: Identifies business terms that have been agreed to by the parties and terms yet to be negotiated in order to finalize the development agreement with MSW as the final negotiations are not expected to be completed prior to June 11, 2019. .

MOTION B: Approves the anticipated Development Agreement subject to final negotiations and County Attorney’s Office review as well as authorizes the initial GMP.

MOTION C: Approves the second amendment to the design services agreement.

MOTION D: Authorizes a budget transfer from general capital reserve to assist in up front costs to be repaid once bonds are issued.

April 26, 2016 Regular Meeting (Item No. 35), May 10, 2016 Regular Meeting (Item No. 35), August 16, 2016 Regular Meeting (Item No. 95), November 1, 2016 Regular Meeting (Item No. 34), April 4, 2017 Regular Meeting (Item No. 43), October 3, 2017 Regular Meeting (Item No. 32), February 27, 2018 Regular Meeting (Item No. 61), August 14, 2018 Regular Meeting (Item No. 102), January 8, 2019 Regular Meeting (Item No. 56), April 16, 2019 Regular Meeting (Item No. 36)

This agenda item supports the Board's goal of increased economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs.

As noted above, the DPA has taken a number of actions related to this project including the approval of MSW as the developer, OMNI Hotel and Resorts as the operator and Weitz as the County’s Owners Representative Due to the many elements of this Agreement, Board members will be receiving additional information for their briefings as well as be given a presentation at the Board meeting. That information will include greater detail on the cost components of the project. Also included will be information regarding project risks and how they are being mitigated, resiliency options for the project, a comparative analysis of expanding the existing convention center versus demolishing it and building an all new project, and the pros and cons of shutting the convention center down during construction versus a phased construction approach with the center still open.

The total estimated cost for the Convention Center Expansion and Headquarters Hotel Project is now estimated to be $1.07B. The County and MSW have been negotiating a comprehensive development agreement over the last several months, which we estimate to be $968M. The proposed Master Development Agreement (Agreement) provides development services by MSW for all of the development activity necessary to construct all aspects of the project.

Motion A identifies the major business terms agreed to by the parties (Exhibit 1), and the few remaining terms to be negotiated (Exhibit 2), which will be concluded in the coming days. The outstanding issues relate to liquidated damages, termination for convenience, early delivery incentives, professional liability requirements and the project contingency reduction timetable.

Motion B provides for approval of the Agreement subject to resolution of the remaining outstanding terms identified in Exhibit 2 and County Attorney’s legal sufficiency review; and covers the initial GMP for the convention center utility relocation. It should be noted that the development agreement provides for up to five additional GMPs, which will be presented to the Board through subsequent amendments as part of a deliberately phased Agreement. These include the construction of the western expansion, the underground and early foundation work for the eastern expansion, the construction of the eastern expansion of the convention center and the construction of the hotel and plaza area. Each GMP segment will require competitive selection for subcontractors and vendors with County oversight, which we anticipate will result in lower GMPs and overall project costs. The project cost increases from the estimate shared with the Board in January of this year ($900M) are due to a number of factors, including upgrades to the existing convention center, new resiliency components, additional square footage for storage, mechanicals, a roof top bar and inflationary increases in projected construction costs.

Motion C is the proposed second amendment (Exhibit 4) to the amended and restated design agreement with MSW and provides for the continuation of the Convention Center’s west expansion through the 50% construction documents phase in order to maintain the expedited design and construction schedule necessary to accommodate future iterations of the Fort Lauderdale International Boat Show. The proposed amendment will also advance the design of the Convention Center’s east expansion and that of the Headquarters Hotel to a level of completion necessary for the establishment of Guaranteed Maximum Prices for those portions of the project. These additional design services are essential to the project’s continuity and completion schedule.

Motion D provides funding for hotel related design fees from the County’s general capital budget, which will be reimbursed when debt is issued.

Alan Cohen, Assistant County Administrator, (954) 357-7364