Broward County Commission Regular Meeting
Director's Name: Stephen Farmer
Department: Finance and Administrative Services Division: Purchasing
Information
Requested Action
title
A. MOTION TO APPROVE most reasonable source designation of asset management services for the Broward County Convention Center Hotel, from North Star Research Corp., dba HVS Convention, Sports & Entertainment Facilities Consulting, for the Finance and Administrative Services Department.
(Per the Tuesday Agenda Memorandum, vendor’s signature page has been received.)
ACTION: (T-12:06 PM) Approved.
VOTE: 8-0. Commissioner Geller was not present.
B. MOTION TO APPROVE Agreement between Broward County and North Star Research Corp. dba HVS Convention, Sports & Entertainment Facilities Consulting for Asset Management Services, Agreement No. GEN2129483A1, for the Finance and Administrative Services Department, in an estimated amount of $3,603,739, including $330,000 for reimbursables and $300,000 for optional services, for the initial ten-year term, and authorize the Director of Purchasing to renew the Agreement for up to two five-year terms, for a twenty-year potential estimated amount of $8,360,280; and authorize the Mayor and Clerk to execute same.
(Per the Tuesday Agenda Memorandum, vendor’s signature page has been received.)
ACTION: (T-12:06 PM) Approved.
VOTE: 8-0. Commissioner Geller was not present.
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Why Action is Necessary
MOTION A: In accordance with Broward County Procurement Code Section 21.25, Sole Source Procurement, nonstandardized sole source procurements above the award authority of the Director of Purchasing must be approved by the Board.
MOTION B: In accordance with Broward County Procurement Code Section 21.47(a), Award and Execution Authority, the Board shall make all awards, and authorize the execution of the associated contracts, with a value of more than $500,000, inclusive of the value of any renewals or extensions provided for in the contract; and Section 21.53, Duration of Contracts, the Board is required to approve all contracts of more than five years.
What Action Accomplishes
MOTION A: Designates North Star Research Corp., dba HVS Convention, Sports & Entertainment Facilities Consulting as the most reasonable source to provide asset management services for the Broward County Convention Center Hotel.
MOTION B: Provides asset management services for the Broward County Convention Center Hotel.
Goal Related Icon(s)
☐County Commission
☐Go Green
☐MAP Broward
Previous Action Taken
None.
Summary Explanation/Background
THE PURCHASING DIVISION AND THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT RECOMMEND APPROVAL OF THE ABOVE MOTIONS.
The Office of Economic and Small Business Development did not review this project for CBE Reserve Program or County Business Enterprise participation goals to this solicitation, based on the most reasonable source designation (Exhibit 1).
Broward County’s new Convention Center Hotel (Hotel), slated to open in the fourth quarter of 2025, will feature 801 rooms, 73,000 square feet of meeting and ballroom space, food and beverage outlets, an 11,000 square-foot full-service spa and fitness center, and over 30,000 square feet of pool decks. The Hotel is expected to receive AAA Five Diamond hotel rating designation.
Omni Hotels Management Corporation (Omni) was selected as the Hotel operator. Omni will be responsible for operating and managing the Hotel on behalf of the County (owner). An independent asset manager specializing in luxury hotel management and convention centers/conference centers is required to ensure the Hotel is successful for the County, including continual financial growth and increasing value.
This Agreement provides the County with continuous Hotel asset management services, which include: reviewing, analyzing, reporting, and advising on Omni’s proposed operating and capital budget; reviewing and reporting on Omni’s monthly performance (financial and operational); identifying opportunities based on industry-specific knowledge with current and forecasted statistics (of comparative national and local area reviews of similarly sized hotels and convention center hotels); and providing specialized, independent reviews, including performance metrics (Exhibit 2).
On May 31, 2024, the Purchasing Division issued a Request for Information (RFI) to ascertain whether there were any other entities able to provide similar hotel asset management services; no responses were received. Subsequently, since the initial RFI exceeded six months (Broward County Procurement Code Section 21.25(b)), a Notice of Intent to Designate Sole Source was issued, which yielded two responses. These responses were reviewed by the Finance and Administrative Services Department (FASD), and it was determined to continue the recommendation on North Star Research Corp., dba HVS Convention, Sports & Entertainment Facilities Consulting (HVS) as the most reasonable source (Exhibit 2).
Since 2014, the County has received and relied on a variety of financial analyses, economic impact reports, and hotel market studies produced by HVS concerning the Hotel. The financial analyses and reports prepared by HVS were instrumental in the process of securing credit ratings and the issuance of the Series 2022 Bonds. Based on this information and HVS’s institutional knowledge from the Hotel’s project inception, FASD and the Director of Purchasing recommend approval of this most reasonable source (Exhibit 1).
One negotiation meeting was held on February 6, 2025 to negotiate the Agreement. The meeting was attended by representatives from HVS, and staff from FASD, the County Attorney’s Office, and the Purchasing Division.
The Agreement has been reviewed and approved as to form and legal sufficiency by the Office of the County Attorney.
The amounts reference is this agenda item were rounded to the nearest whole dollar.
The initial agreement period begins upon full execution by both parties and terminates ten years from that date.
Source of Additional Information
Robert E. Gleason, Director, Purchasing Division, (954) 357-6070
Fiscal Impact
Fiscal Impact/Cost Summary
The open-end agreement has an estimated amount of $8,360,280 over a potential twenty-year period. The asset management fees are part of the Hotel’s operating budget and will be paid from the Hotel’s revenues and operations.
Requisition No. FAS0000169