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HomeMy WebLinkAboutR-81-1041'44 i 0 .j RESOLUTloN No. 81 m 10 41 A RESOLUTION AUTHORIZING THE CITY MANAGER TO APPOINT THE FIRM, LAVENTHOL AND HORWATH, AS CONSULTANTS TO PREPARE AND SUBMIT A RECOMMENDED SCHEDULE OF RENTS, RATES, FEES AND CHARGES FOR THE USE AND OCCUPANCY OF AND FOR THE SERVICES FURNISHED OR TO BE FURNISHED IN CONNNECTION WITH THE CONVENTION CENTER/GARAGE OF THE CITY OF MIAMI/UNIVERSITY OF MIAMI JAMES L. KNIGHT INTERNATIONAL CENTER; SAID FIRM'S APPOINTMENT TO BE CARRIED OUT IN ACCORDANCE WITH COMPENSATION NOT TO EXCEED $11,250 WHICH SUM INCLUDES EXPENSES, AND USING FUNDS THEREFOR FROM BOND SALE PROCEEDS. WHEREAS, the City of Miami/University of Miami James L. Knight International Center is scheduled for opening in 1982; and WHEREAS, the City of Miami has covenanted in the Trust Indenture securing the Convention Center and Parking Garage Revenue Bonds in Article V Section 501 that a Consultant will be appointed to prepare and submit a recommended schedule of rents, rates, fees and charges for the use and occupancy of and for the services furnished or to be furnished in connection with the Convention Center/Garage of the City of Miami/University of Miami James L. Knight International Center; and WHEREAS, the firm of Laventhol and Horwath prepared the feasibility study which supported the Bond Issue and which has been used as a basis for preparing the first operating budget for the Convention Center, it is therefore reasoned this firm would be in an exceptional position of expediting the preparation and submission of the required schedule of rents, rates, fees and charges and relating the schedule to the feasibility study; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager is hereby authorized'to appoint the firm of Laventhol and Horwath as Consultants for the purpose of preparing and submitting a schedule of rents, rates, fee and charges for the use or occupancy of and for the services furnished or to be CITY COMMISSION MEETING OF DEC 1 01991 1 4 � - 1 ftirttiahed in cannectidn with the Convention Centet/Garage of the City of Miami/Oniversity of Miami James L. tonight International Center in accordance with the terms of the attached proposal of Laventhol and Horvath. Section 2. Compensation for said firm is not to exceed $10i000 plus $1,250 in expenses with funds therefor to be derived from proceeds of said Center bonds. PASSED AND ADOPTED this 10 day of DECEMBER , 1981. �TA T: G. 0NGIE CLERK PREPARED AND APPROVED BY: pwa','l I-&a4c A0139RT F. CLARK DEPUTY CITY ATTORNEY APPRO-UD AS TO FOR GEORt;Y%F. KNOX, JR: CITY RITORNEY RECTNESS: -2- MAURICE A. FERRE M A Y 0 R 81 1041 s'f tb HOward V. Cary 101 t-01' 16 P11 2 c:�A$ City Manager FILE FROM C. bean Hofineister�tk.SUBJECT P,Xecutive Director James t, Knight int'l Center r November 10# 1981 Rates and Charges - Knight Center/ Garage professional Services Agreement It is recommended that the proposed _j Resolution be adopted authorizing the City Manager to appoint the firm of Laventhol & Horwath on a professional services basis to prepare and submit a schedule of recommended rates, rents, and charges for the Convention Center Garage _ As covenanted by the City in the Trust Indenture securing the Conven- tion Center and Parking Garage Revenue Bonds, a Consultant should have been appointed by October 1980, to submit recommended rates for the Center and the Garage, to the City Manager by March 1, 1981. Please see the attached copy of excerpts from the Trust Indenture. The firm of Laventhol and Horwath prepared the feasibility study which supported the Bond Issue for the Convention Center/Garage. Additionally this feasibility study was used as a basis for the preparation of the Center/Garage operating budget for 1981/82. It would seem reasonable to assume this firm would be in the best position to expedite the sub- mission of the required schedule of rates and charges. Further, they should be better able to relate their recommended rates to the feasibility study in a reliable manner. It is recommended the City Manager be authorized to appoint the firm of Laventhol and Horwath on a professional services basis for the purpose of preparing a schedule of rates, rents,fees, and charges for the use and occupancy of and for the services furnished or to be furnished on the Convention Center/Garage of the City of Miami/University of Miami James L. Knight International Center. CDH/mim cc: Cesar Odio Terry Percy John J. Copelan Dept of Management & Budget 81 -1041 S&tio83 409. got 48 Section 408, The completion of construction of the Convention Center -Garage shall be evidenced by the filing with the City and the Trustee certificates stating the date of physical completion, signed by the Architect and approved by the project Director and the City Manager of the City. Such certificates shall be accompanied by an opinion of counsel (who may be counsel for the City) to the effect that there are no mechanics', laborers', contractors' or materialmen's liens on any property constituting a part of the Convention Center -Garage or on file in any public office where the same should be filed in order to be perfected liens against any part of the Convention Center -Garage and that, in the opinion of the signer, the time within which such liens can be filed has expired. Upon receipt of such certificates and opinion the balance in the Construction Account not reserved by the City, with the written approval of the Architect, for the payment of any remaining part of the cost of the Convention Center -Garage shall be transferred by the City to the Trustee for deposit, to the credit of the Sinking Fund. ARTICLE V. REVENUES AND FUNDS. SECTION 501. (a) The City covenants that, on or before the date any portion of the Convention Center -Garage is ready for use and occupancy as certified in the Certifi- cate of Use, the City will fix, charge and collect, or cause to be fixed, charged and collected, reasonable rents, rates, fees and charges for the use or occupancy of and for the services furnished or to be furnished in connection with such portion of the Convention Center -Garage then completed upon consideration of the schedule of rents, rates, fees and charges recommended by the Consultant retained for such purpose. (b) Commencing with the fiscal year preceding the fiscal year in which substantially all of the Convention Center -Garage is ready for use and occupancy as certified in the Certificate of Use, and in each fiscal year thereafter, the City shall cause a Consultant retained for such purpose to submit, on or before March 1 of each fiscal year, to the City Manager a recommended schedule of rents, rates, fees and charges for the use and occupancy of and for the services furnished or to be furnished in connection with'the' Convention Center -Garage in the fiscal year commencing on the next succeeding October 1. The recommended schedule of the Consultant so submitted shall be at least sufficient to produce Gross Revenues of the Convention Ccnter-Garage such that the covenant of the City in the third paragraph of this clause (b) of Section 501 would be satisfied if such schedule were adopted by the City. Commencing with the fiscal year preceding the fiscal year in which substantially all of the Convention Center -Garage is ready for use and occupancy as certified in the Certificate of Use, and in each fiscal year thereafter, the City shall put in effect, on y,. 81-1041 1 secitofl 01 50 event of default under the provisions of this Trust tndenture if the Gross Revenues of the Convention Center -Garage shall be less than the amount required under the third para- graph of clause (b) of this Section 501. The City covenants and agrees that it will fix, or cause to be fixed, rates, rents, fees and charges, subject to any applicable requirements imposed by law, upon the basis of reasonable classifications to prevent any unlawful discrimination and that such rates, rents, fees and charges shall be uniform in their application to all users and services falling within any class. The City further agrees that no free use of the Convention Center -Garage will be permitted. The City further covenants that upon making any request of the Consultant retained for the purposes of this Section 501 for recommendations as to such rents, rates, fees and charges, or upon the receipt of any such recommendations from such Consultant or upon the adoption by the Commission of any revisions of such rents, rates, fees and charges, a copy, certified by the City Clerk or a Deputy City Clerk, of any such request, recommen- dations or revisions will forthwith be filed with the Trustee. (d) The City covenants that it will cause the Consultant retained for such purpose (which may be the Consultant retained for the other purposes of this Section 501), among such other duties as may be imposed by the City or by this Trust Indenture, to make an inspection of the Convention Centcr-Garage at least once in each fiscal year following the fiscal year in which substantially all of the Convention Centcr-Garage is ready for use and occupancy as certified, in the Certificate of Use, and, on or before February 1 in each year for the succeeding fiscal year the Consultant shall submit to the City a report or reports setting forth with respect to the Convention Center -Garage such Consultant's (1) findings as to whether the Convention Center -Garage has been main- tained in good repair, working order and condition during the preceding fiscal year and (2) recommendations as to: (i) the proper operation, repair and maintenance of the Convention Cepter- Garage during the ensuing fiscal year and an estimate of the amount of money necessary for such purpose, (ii) insurance to be carried under the provisions of this Trust Indenture during the ensuing fiscal year, and (iii) the additional amount, if any, that should be deposited during the ensuing fiscal year for the credit of the Renewal and Replacement Fund and the increased maximum amount, if any, that shall be held during the ensuing fiscal year for the credit of such Fund, as provided and for the purposes set forth in this Article. A. - s1-104I Ak s . . Wi 49 Section 301 October I of each fiscal year, an ordinance which shall fix rents, rates, fees and charges for the use and occupancy of and for the services furnished or to be furnished in connection with the Convention Center -Garage in such fiscal year, In fixing or causing to be fixed such rents, rates, fees and charges, the City shall consider the schedule of rents, rates, fees and charges recommended to the City for the next ensuing fiscal year and submitted by the Consultant retained for such purpose to the City Manager on or before March I of the preceding fiscal year. ,The City further covenants that, subject to clause (c) of this Section, the rents, rates, fees and charges so fixed shall be at least sufficient to produce Gross Revenues of the Convention Ccnter-Garage (exclusive of money held in any Funds and Accounts established under this Trust Indenture), in each fiscal year in a total amount equivalent to not less than the sum of (i) the Current Expenses of the Convention Ccnter-Garage; (ii) 125% of the Principal and Interest Requirements for said fiscal year; (iii) the amount necessary, if any, to provide for deposits to the credit of the Renewal and Replacement Fund pursuant to clause (e) (4) of Section 504 of this Trust Indenture; and (iv) the amount, if any, necessary to make up any deficiency in the Bond Service Account, the Reserve Account, the Renewal and Replacement Fund and the Supplemen- tal Reserve Fund, which cannot be made up from any other funds available therefor. In no event shall any money held for the credit of the Supplemental Reserve Fund be taken into consideration in fixing increases in rents, rates, fees and charges required pursuant to this Section. The City covenants and agrees that it will not reduce the rates, rents, fees and charges for any fiscal year below those in effect at the end of the preceding fiscal year unless either (i) the Consultant retained for the purposes of this Section 501 shall estimate that by reason of any such reduction in the rates, rents, fees and charges the Gross Revenues of the Convention Center -Garage for such year shall be at least five percent (5%) in excess of the Gross Revenues of the Convention Center -Garage for such preceding fiscal year or (ii) the Gross Revenues of the Convention Center -Garage in any fiscal year are lower than the Gross Revenues of the Convention Center -Garage in the preceding fiscal year and such Consultant shall determine that such reduction in said Gross Revenues of the Convention Center -Garage was substantially caused by the City's inability under the requirements of this paragraph to reduce the rates, rents, fees and charges. (c) Anything in this Trust Indenture to the contrary notwithstanding, if the City shall comply with all recommendations of the Consultant retained for the purposes of this Section 501 with respect to said rents, rates, fees and charges, it will not constitute an stdion SOt 50 event of default under the provisions of this Trust Indenture if the Gross Revenues of the Convention Center -Garage shall be less than the amount required under the third para- graph of clause (b) of this Section 501, The City covenants and agrees that it will fix, or cause to be fixed, rates, rents, fees and charges, subject to any applicable requirements imposed by law, upon the basis of reasonable classifications to prevent any unlawful discrimination and that such rates, rents, fees and charges shall be uniform in their application to all users and services falling within any class. The City further agrees that no free use of the Convention Center -Garage will be permitted. The City further covenants that upon making any request of the Consultant retained for the purposes of this Section 501 for recommendations as to such rents, rates, fees and charges, or upon the receipt of any such recommendations from such Consultant or upon the adoption by the Commission of any revisions of such rents, rates, fees and charges, a copy, certified by the City Clerk or a Deputy City Clerk, of any such request, recommen- dations or revisions will forthwith be filed with the Trustee. (d) The City covenants that it will cause the Consultant retained for such purpose (which may be the Consultant retained for the other purposes of this Section 501), among such other duties as may be imposed by the City or by this Trust Indenture, to make an inspection of the Convention Center -Garage at least once in each fiscal year following the fiscal year in which substantially all of the Convention Center -Garage is ready for use and occupancy as certified, in the Certificate of Use, and, on or before February I in each year for the succeeding fiscal year the Consultant shall submit to the City a report or reports setting forth with respect to the Convention Center -Garage such Consultant's (1) findings as to whether the Convention Center -Garage has been main- taincd in good repair, working order and condition during the preceding fiscal year and (2) recommendations as to: (i) the proper operation, repair and maintenance of the Convention Cepter- Garage during the ensuing fiscal year and an estimate of the amount of money necessary for such purpose, (ii) insurance to be carried under the provisions of this Trust Indenture during the ensuing fiscal year, and (iii) the additional amount, if any, that should be deposited during the ensuing fiscal year for the credit of the Renewal and Replacement Fund and the increased maximum amount, if any, that shall be held during the ensuing fiscal year for the credit of such Fund, as provided and for the purposes set forth in this Article. A- W : 11 - M Ste lon3 501, 502 51 Promptly after the receipt of such report or reports by the City, copies thereof shall be filed with the Trustee and mailed by the Trustee to all bondholders of record and, upon written request, to the Hotel Developer, Dade Savings and the University, j The City covenants that, to the fullest extent feasible and consistent with applicable j law and this Trust Indenture, it shall observe and comply with such recommendations of i the Consultant retained for the purposes of this clause (d) of this Section 501 and further covenants that, if any such report shall set forth that the Convention Center -Garage has not been maintained in good repair, working order and condition, it will promptly restore the Convention Center -Garage to good repair, working order and condition with all expedition practicable in accordance with the recommendations of such Consultant. SECTION 502. The City covenants that for each fiscal year, commencing with the fiscal year in which any portion of the Convention Center -Garage is ready for use and occupancy as certified in the Certificate of Use and until substantially all of the Conven- tion Center -Garage is ready for use and occupancy, as provided below, the City will adopt a budget (consistent with the budget procedures of the City then in effect and which may be a part of the official City budget) of Current Expenses of the Convention Center - Garage and of expenditures of money in the Renewal and Replacement Fund (herein called the "Initial Budget"). The Initial Budget for any fiscal year shall be adopted not later than the. commencement of such fiscal year or as soon thereafter as practicable. For each fiscal year following the fiscal year in which substantially all of the Convention Center -Garage is ready for use and occupancy as certified in the Certificate of Use, the City will adopt an annual budget (consistent with the budget procedures of the City then in cf ect and which may be a part of the official City budget) of Current Expenses of the Convention Center -Garage and of expenditures of money in the Renewal and Replacement Fund (herein called the "Annual Budget"). The Annual Budget for any fiscal year shall be adopted not later than the commencement of such fiscal year or as soon thereafter as practicable. Copies of each Initial Budget, each Annual Budget and any amendment of or supplement to any Initial Budget or Annual Budget shall be filed with the Trustee and mailed by the City to the Hotel Developer, Dade Savings, the University and such Consultants as the Director of Finance considers to be appropriate. Each Initial Budget, each Annual Budget and each amendment of or supplement to any Initial Budget or Annual Budget shall not become effective until reasonable consideration shall have been given by the Commission to any changes in any such proposed budget or in any proposed amendment or supplement thereof that may be suggested in writing to the Director of Management and Budget of the City by any of such persons receiving said proposed budget. -1l LAV C N *` H 0 L H O AWAT H 261 ALHAMdftiA,d1AdLt . C(50AL OAtLt 9: PL ItIU d0 lPIEb PUBLIC ACOOUNTANrs IaOS) 442-2060 A MEMBER OP HORWATH 8 HOPWATH INtPRNATIONAL WITH AFFILIATED OFFICES W6hLbW10t October 29, 1981 Mr. C. Dean Hofineister Hxecutive Director James L. Knight International Center 150 S.E. 2nd Avenue, 12th Floor Miami, Florida 33131 Dear Mr. Hofineister: In accordance with your recent telephone conversation with Donald Dahlfues of our staff, we are pleased to submit this proposal to perform certain consulting services for James L. Knight Interna- tional Center. It is our understanding that pursuant to Article V, Sec- tion 501, of the Trust Indenture dated July 1, 1980 between the City of Miami, Florida, and the Florida National Bank of Miami, as Trustee, the City is to retain an independent consultant to assist in estab- lishing a schedule of rents, rates, fees and charges for use and occupancy of the Convention Center/Garage. We also understand that the schedule of rents and rates should conform with various covenants included in the Trust Indenture and that it is to be submitted to you as soon as possible. In conjunction with the establishment of rents and rates for the Convention Center/Garage, the independent consultant is to make an inspection of the Convention Center/Garage in order to de- termine that the facilities have been maintained in good repair, work- ing order and condition. The consultant is also required to review ►81-1041 6 t Mr. C • baAh Hoftdiater m � October 29, 14d i the adequacy of insurance to be carried on the facility and the de- posits to the Renewal and Replacement Fund and make such recommenda- tions concerning them as may be appropriate. In order to accomplish the objectives of this engagement our procedures will include, but not necessarily be limited to, the following: 1. Review of the Official Statement dated June 30, 1980 related to the City of Miami, Florida, $60,000,000 Convention Center and Parking Garage Revenue Bonds. 2. Review of the Trust Indenture dated July 1, 1980 between the City of Miami, Florida, and the Florida National Bank of Miami securing the Convention Center and Parking Garage Revenue Bonds. 3. Review of the Financial Feasibility Study dated June 30, 1980 of the City of Miami Convention Center and Parking Garage pre- pared by our firm and the workpapers related thereto. 4. Survey of selected competitive/comparable existing convention centers and parking garages concerning current and anticipated rents and rates applicable to their facilities. 5. Preparation of a recommended schedule of rents and rates appli- cable to certain portions of the Convention Center and the Park- ing Garage in conformity with the provisions of the covenants of the Trust Indenture. I � _y ��:. �. dean �ofri►eister �.�fz October 29� i���. 6. inspect the Convention Center/Garage to determine if it appears that the facilities have been maintained in good repair, working order and condition, and 7. Review the insurance being maintained on the facilities and the deposits to the Renewal and Replacement Fund to determine their adequacy in conformity with the provisions set forth in the Trust Indenture. It is recognized that the covenants of the Trust Indenture refer to gross revenues of the entire Convention Center/Garage and that our recommended schedule of rents and rates will only include certain specific portions of the Convention Center as well as the Parking Garage. Accordingly, you will provide us with the estimated revenues to be derived from all other segments of the Convention Center that are not part of our recommended schedule. In this man- ner, gross revenues of the entire Convention Center/Garage can be determined and compared with the covenants of the Trust Indenture. The recommended schedule of rents and rates for the speci- fied portions of the Convention Center/Garage will be provided to you in a letter report upon completion of this engagement. The letter report will also include the results of our inspection of the facil- ities and our recommendations concerning insurance coverage and de- posits to the Renewal and Replacement Fund. 81-1041 Me. C. bean 96fteeister ,"4- October 29, l9al' Our fees for the above services will be computed at our standard rates and will be billed to you j together with out-of-pocket costs, every two weeks as the work progresses. Our invoices are due and payable upon presentation. We estimate our fees for this engage- ment at $10,000, plus expenses. If the time and fees required to complete our engagement are less than estimated, you will be billed the lesser amount. If circumstances are encountered which indicate the need for a revision of our fee estimate, we will discuss with you the causes and likely effects of the required revision, both in terms of timing and fees. We appreciate the opportunity to present this proposal to you and look forward to assisting you with this project. If the foregoing agrees with your understanding of the engagement, please sign the enclosed copy in the space provided and return it to us. Very truly yours, LAVENTHOL & HORWATH �Vw rwin I. Glick Senior Principal I IG/ov Encl. 41-11007 ACCEPTED BY: DATE: k