HomeMy WebLinkAboutR-80-0699�1
RESOLUTION N0. r � � � 6 9
A RESOLUTION AUTHORIZING THE PAYMENT OF
$32,500 AS FINAL PAYMENT FOR SERVICES PRO-
VIDED BY LAVENTHOL & HORWATH, CERTIFIED
PUBLIC ACCOUNTANTS, FOR THE PREPARATION OF
FINANCIAL FEASIBILITY STUDIES IN CONNECTION
WITH THE CITY OF MIAMI/UNIVERSITY OF MIAMI
JAMES L. KNIGHT INTERNATIONAL CENTER: SAID
FEE TO BE PAID FOR FROM BOND FUNDS AVAIL-
ABLE FOR THIS PROJECT.
WHEREAS, the City of Miami successfully completed the sale of the
Convention Center Revenue Bonds on August 7, 1980; and
WHEREAS, one of the important services provided in connection with
the Bond Issue was the financial feasibility study prepared by Laventhol &
Horwath; and
WHEREAS, the City has received the final bill for these services in
the amount of $32,500.
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF
MIAMI, FLORIDA:
Section 1. The City Manager is hereby authorized to pay to the firm
of Laventhol & Horwath, Certified Public Accountants, the sum of $32,500 as
complete payment for services rendered in the preparation of financial
feasibility studies in connection with the City of Miami/University of Miami
James L. Knight International Center, said payment to be made from bond
issue proceeds for this project.
PASSED AND ADOPTED this25 day of SEP,rEMBER , 1980,
IVE
.::
ATTEST: FOLLOW„
FRALPH49. ONGIE, CITY CLERK
PREPARED AND APPROVED BY:
414't'i ':�/ —&I!<
ASSISTANT CITY ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS:
GEORGE F.JKNOX, CITY ATTOR, Y
MAURICE A. rERRE
URICE A. FERRE, M A Y 0 R
"DOCUMENT .INDEX
ITEM N0,
CITY COMMISSION
MEETING OF
SEP2 a 1980
o - 6 9 �
mum
11111 .,,.
J
lei�
y CITY OF MIAMI. F'LURIDA
INTER -OFFICE 1AV,10F?ANf)UM
70. Richard L. Fosmoen September 17, 1980 FILE
City Manager
Conference Convention Center -
/ Feasibility Study - Fee
FFt %I
Vindentt- E. Gr�
Assistant_ C;�fy Manager
,
Earlier this year it was necessary to request Laventhol & Horwath
to provide additional services not covered under their existing
agreement. ;
A letter agreement was prepared between the firm of Laventhol &
Horwath and the City, and signed by the City Manager on Febru-
ary 27th of this year. This agreement was authorized by the
Manager but requires Commission ratification before payment can
be made. At the time of the letter agreement, it was estimated
that the services would require an additional fee of approximately
$20,000 to be determined by hourly changes.
During the months between March and the final closing in August,
we were in constant negotiations. The changes that were made in
the Lease and Agreement, the IRS consideration, the constant
changes in the Dade Lease and the very rapidly changing bond
market required the calculations of revenue projections be redone
with each change. This is the reason for the extra cost.
Attached is a final bill from Laventhol & Horwath in the amount
of $32,500. A resolution has been prepared which authorizes pay-
ment of this final fee from bond funds. I feel it is important
to emphasize that without the services provided by this firm we
could not have concluded the successful sale of the bonds.
VEG/h
cc: City Attorney
C. Garcia, Dir., Finance Dept.
A. Poms, Project Manager
LC,Vvr�
LAVENTHOL & HORWATH
Febr'LarY 26, 1980
CERTIFIED PUBLIC ACCOUNTANTS
201 ALHAMC3PA CIRCLE
CORAL GAMLES. FL 33134
(3051 442-2000
i,ir. Joseph Grassie
Ci '
�1' :•;arager : � � � �•
a. 0 f Miami
35GO rail lNi e.ic an Drive A � i`• r �J��';%
iL
?_ i, Fu 33131
F111ancia' Fe asini1itV 5 ='. 3., - Cor., an ion C-..nter -
Garage
1,joa2: Mr. Grassie:
'i'iliC•' la ti:('.1: IS to C bi:i ?::7 _''�1 aut ho i,-,3ticon, ..4r; c4i t'!Lmso(i
ol?t ;:Q@n air. 11d :iL'. �i111C :'Ili: fOj us tC• p?:Cl-
`' l.:ti ac2C:...t.ic,n�J. y(?1.'t1:'..C.3S to i:a? :i l?''Qji,',C;t '.`'11ic
i,Zc lint ..1i hifn 1'i�h", scup-:, 0f 0tI`." i)2:,^)Sc?11-1 a eL,inentS. 'rl,hc''.1So
in
o: QL21: mar}:e'- �:,'',-Lld tQ t11L, c,%tan'tt de`m,: � l
nt:.C.''.::s,".1L ��'�' ;rilll.i:;: 13a«'n'•�'i 1'1a::: is i.t)ham and cxr;,.?:1n%_',
2. oLll !'?. 1C121C.i 1 r7::.o QcLi.011S t0 i:C::10Gt
C11 lay^3 1I1 1:11C? 1Ii`:l�rE2:i'. I:C�; r� L'Ui: tar.'. bond
L:iaLiC', Cil•:lilti�2t i.I1 t:ae L)L'Oa,:"Jt .01 lne
CIO:I:i O.. tiU 11 j^C'l L11iC;;, .Zci a�t:::l.Il' O. (7L'I:11I11I;'
1Y...1c1 S.II ll..':i1C:�, t:a� it jQ`3 l:l )t iC ,•.C. r. .YL) t •3 1;,
L! C 1, ..• 1 C: ; .1 L 1: e i'r (� :: i i `i i Cl li' lam. i? . 1 lZ : • 1 1 f i :11 C Le 1 : 0 1 J C1
L•. sulC of i':r1'viSLf:i1S lil t: :C? i`.i'"(:f,:?/a, �C?Z'13 Q: 'ao
,.ru a :i Tty cl.rlon ch, ilr:ns ill .}lJ Or;
*:1`.:i011 f:Q 011
L'li:lllCi 11 i�1 U]C�.C�«5 as' �t"t a L:ecp'lo ., ed
31-li'l11 E 1=ili=�• ► 11�: ris U;)al:tl an""
). ?�1e.j Ii1.0:1'ci ?.I) t';1?: �C :+: 0 our 1 eq.,•'i. t, CiS ;Z:)gi'O:)L'1:1`:
Cla? to •'�i:.l.lii:3 ? c1flC: �. a:.'Q'. _ c'.(1:1 �U iJiC'Q''i L't , ' �o, Z �t, t 1C3
:anci.Z1. ,:ICE,?C:CiCI;. �o' ' is"Ci CCt itii'�a f:a'? 'r;ral l:;
t'l:1 a' C..,t:v:::):'' J onnose r..
11w0 : ;1 13 L. ;»at?.. .O :)a1IIC.
80-699
tt�
olr_'�
Joseph Grassie F :bruar' 26, 1980
4. Attendance at meetings ;Ji L:Z the bond underwriters, bona)
counsel, rating aaencie5 or Others a5 requested.
As you know, several aspects of the various agreements
bet;�'een the City and other parties connected with this
Project are unrdsolved or are being renegotiated. Also,
the interest rate on ti:e proposed bond issue has not been
finalized nor have certain provisions of the Trust Inden-
ture and Official Statement, hc%-,ever, in view of time
constraints we have been asked by Smith Barney, Harris
Upham to proceed with our work so ti;aL-%an updated report
be available as quickly as possible. This means that it
may be necessary, to ma;:e further revisions in the event
that charges are again made in any variable affecting our
report or projections.
In vi.e o"f there conditions, ee cannot estimate our tims
requirements and fens for this work; and, will bill you ::or
oUr services on the basis of the time spent charred at
our current hourly rate. Out-of-pocket expenses; including
travel and subsistence, expenses incurred as a result of Our
attendance at meetings, typa.ng and report reproduction will
be billed in addition to our fe@s. ;pie Piill notify you when
and if our fees reach S20,000. The total of our fees and
texPenses fO1: th4SC services, togetho_ ;5'i t!'1 an}' Unpaid balan.c
f
of fees and expenses fog -services rendered under our" prasent
agrerment will be duc and p %fable upon prasentatior, of our
final report.
As evidence of your authorization, please sign the enclosed
cony of this lette-- and return it to my attention.
S�G:vr
ACCEPTED Blip:
DATE:
Vera, truly yours,
LAVE• NT {OL S HO WA'111
CZ_
� 0 u Ittstein
Paer4ncr-In-Charge
r � �
.01
LAVENTHOL & HORWATH
CERTIFIED PUBLIC ACCOUNTANTS
201 ALHAMBRA r_IF1CLIM
r_ORAL. GAULes. FL 33134
(305) 442-2000
I February 2G, 1980
Mr. Joseph Grassie
Ci L y Manager
C v Of M, :-mll i
35CO !7,an Ame-rican r
NI "
33131
,: Study Convention Pz. -, , � I c -J a 1 F e a s 1) a.
Garage
Dear Mr. Grassia:
4
his lett-e-, "s LI Ll,-'l o r a 4,: io 11, s 14 1- s cu s s a d
1)
and !Jlincent- Grimm,Gri'mm, US tc- P
., 1 4 1,
v (f. c z- 1, d" I L re-latinc., to tni-3
0 't � -: 0 0 �,
�%.rc not !,'dthin t'tl,- scOP1,I) Of 0=- Pr SL'I' al,'C-111 r-t.--
s
of OL'12: to 11--he dOeMe
neczissary ID,,, 1-farris Upham and Campanyl
t h c- U 11cle, r ".., r i r.,
n -1c 2. -rovision of our n�lncial pl:-:)jcic io s to 1-70'1L. t
Chan,.-'os ill tho intcr%�q,.: rut''. {0,1- tha. pro...'0000, bor-i
-L 1-2 3 1, C, i -.i n s vi t"c2 Pl:Ojoct��d scu!:cos and arolica-
0.,- fur,,G:o al--', a Of
Cnan,.,,os in prc-loc,Lud vcnt.
c!d flcm tile Co;jtcir As ck
rasulc of vov.isions, in t!'.Q P s !--orm-3 0*1
L c a s cj v e.mo n i7i ',', c" -, In a s I f 0 t -f 0 a S 0 11
t,itioll c)1,7 t110 financial -,proj^ctiozls as roqUostod
i. 0 2 0 Ll 1: 1: epo r a s Rov".sions ".n -Iv-u tox t,
c!"lo -to 'pcint-S 2 to 1nooz.-*01-,atc,
a !,. c a 1. r 2 c t: i c r. 's z In 0 h t he "-:0 r 1
into ma in roticrz a s o 1:: p 0 na
Z -I t c
110-699
Mr. Vincent Grimm
-4- September 12, 1980
It is important to note that approximately 45% of the time expended
by us was the result of the need to make repeated revisions in the
financial projections and report text and review all relevant docu-
ments (leases, Trust Indenture and Official Statement) as a result
of the frequent changes affecting these items which occurred sub-
sequent to February 26, 1980. Given the complexity of the financial
structure of the project, particularly the priority of the flow of
funds to the various reserve accounts and the funding requirements
of these accounts, the changes made in various aspects 'of the project
resulted in particularly time consuming revision to our projections
and report. In addition, frequent changes ;made to the financial
structure itself made further revisions necessary. You are perhaps
more aware than anyone of the difficulties experienced in resolving
the Trade Center lease and the frequent changes made in the interest
rate on the Bonds and in the various funding requirements as set
forth in the Trust Indenture.
I can assure you that every effort was made to minimize the time ex-
pended by our staff and the out-of-pocket costs incurred in complet-
ing our work. I would also note that, in accordance with the terms
of our letter of February 26, 1980, you were regularly and accurately
informed of the status of our work and the balance of our fees and
expenses.
We have been extremely pleased to be associated with this project and
to have worked with you personally in this regard. We look forward
to favorable action by the Commission in the formal authorization for
payment of the outstanding balance of our fees and expenses and your
personal endorsement of such action.
Very truly yours,
LAVENTHOL & HORWATH
... OJJG.,,e
Irwin I. Glick
Senior Principal
IIG/br
DOCI
Fol
-
Mr. Vincent Grimm
Task
-3- September 12, 1980
rnmmnitaut
Rates Fees
5. Additional due diligence
review of all leases,
offering materials and
other documents necessary
due to changes in do-
cuments. 30.0 $ 80.00 $ 21400
23.0 100.00 2,300
53.04,700
6. Additional proofing of.
2.0
45.00
90
all offering materials.
30.0
80.00
2,400
2.0
100.00
200
34.0
2,690
7. Additional meeting and
2
2,0
telephone conferences.
2.0.0
20
1000.00
200.00
31.0 2,520
Total consultant hours and
fees 379.0
29,750
EXPENSES
613
Telephone
Taxi and other local
transportation
182
156
Meals
839
Travel and lodging
326
Reproduction supplies
558
Postage and courier
76
76
Graphics
�J..
2,750
Total expenses
j . �,�i�""
-. �., j
I•, IP�^
$32,500
Total fees and expenses
IS
gp-699
r"',
Mr. Vincent Grimm
Task
B. Bond Interest Rates
C. Sources and uses of
total project funds
D. Project Development
Schedule
3. Revisions of report text
due to preceding points
1 & 2 and to incorporate
the financial projections
for the project with the
World Trade Center into
the main report rather
than as a separate supple-
mental report as had pre-
viously been requested.
4. Preparation of summary
report for inclusion in
Preliminary Official
Statement.
el�i
-2- September 12, 1980
Consultant
hours
Rates
Fees
7.0
$ 50.00
$ 350
22.0
80.00
1,760
29.0
2,110
25.0
50.0
1,250
17.0
80.0
1,360
42.0;
21610
9.0
80.0
720
27.0
80.00 2,160
15.0
100.00 1,500
42.0
3,660
3.0 50.0
150
19.0 80.0
1,520
6.0 125.0
750
28.0
2,420
LAVENTHOL & HORWA'rF-IJ 1 11
r��+tj',-i���,;,,;j
CERTIFIED PUBLIC ACCOUNTANTS
'CO SCP 18 P11 2:32
Mr. Vincent Grimm
Assistant City Manager
City of Miami
3500 Pan American
Miami, Florida 33131
Dear Mr. Grimm:
N
201 ALHAM13RA CIRCLE
CORAL GABLES, FL 33134
(305) 442-2000
A MEMBER OF
HORWATH & HORWATH INTERNATIONAL
WITH AFFILIATED OFFICES WORLDWIDE
September 12, 1980
Our invoice dated July 17, 1980 in the amount of $32,500 was based
upon an outstanding balance of fees and expenses incurred through
July 4, 1980 in the amount of $31,500 and of $1,000 for services ren-
dered from that time through August 5, 1980 (the closing date for the
bond sale).
In response to your request, the following is a breakdown of the tasks
accomplished, the time expended in each area and costs incurred under
our engagement letter of February 26, 1980:
FEES
Consultant
Task
hours
Rates
Fees
1. Updating statistical
57.0
$ 80.00
$ 4,560
and market
research from
2.0
100.00
200
April 1979
to March 1980
59.0
4;760
2. Revision of
financial pro-
jections to
reflect Chan-
ges in:
A. Lease
Agreements
20.0
50.0
1,000
32.0
80.0
2,560
52.0 3,560
�' ..� .
r...�. Vv 80-b99 L.
Mr. Vincent Grimm
Task
B. Bond Interest Rates
C. Sources and uses of
total project funds
D. Project Development
Schedule
3. Revisions of report text
due to preceding points
1 & 2 and to incorporate
the financial projections
for the project with the
World Trade Center into
the main report rather
than as a separate supple-
mental report as had pre-
viously been requested.
4. Preparation of summary
report for inclusion in
Preliminary Official
Statement.
-2- September 12, 1980
Consultant
hours
Rates
Fees
7.0
$ 50.00
$ 350
22.0
80.00
1,_760
29.0
2,110
25.0
50.0
10250
17.0
80.0
1,360
42.0;
2,610
9.0
80.0
720
27.0
80.00 2,160
15.0
100.00 1t500
42.0
3,660
3.0 50.0
150
19.0 80.0
1,520
6.0 125.0
750
28.0
2,420
Mr. Vincent Grimm
Task
-3- September 12, 1980
Consultant
Rates Fees
5. Additional due diligence
review of all leases,
offering materials and
other documents necessary
due to changes in do-
cuments. 30.0 $ 80.00 $ 2,400
23.0 100.00 2,300
53.04,700
6. Additional proofing of
all offering materials. 2.0
45.00
90
30.0
80.00
2,400
2.0
100.00
200
34.0
2,690
7. Additional meeting and
telephone conferences. 29.0
80.00
2,320
2.0
100.00
200
31.0 2,520
Total consultant hours and fees 379.0 29,750
EXPENSES
Telephone 613
Taxi and other local transportation 182
Meals 156
Travel and lodging 839
Reproduction supplies 326
Postage and courier 558
Graphics ,;; 76
Total expenses sQC.;/r�" '?:•2,750
Total fees and expenses��� .tt�s ;;�.' �1 $32,500
vis
80-699
? n
Mr. Vincent Grimm -4- September 12, 1980
It is important to note that approximately 45% of the time expended
by us was the result of the need to make repeated revisions in the
financial projections and report text and review all relevant docu-
ments (leases, Trust Indenture and Official Statement) as a result
of the frequent changes affecting these items which occurred sub-
sequent to February 260 1980. Given the complexity of the financial
structure of the project, particularly the priority of the flow of
funds to the various reserve accounts and the funding requirements
of these accounts, the changes made in various aspects'of the project
resulted in particularly time consuming revision to our projections
and report. In addition, frequent changes made to the financial
structure itself made further revisions necessary. You are perhaps
more aware than anyone of the difficulties experienced in resolving
the Trade Center lease and the frequent changes made in the interest
rate on the Bonds and in the various funding requirements as set
forth in the Trust Indenture.
I can assure you that every effort was made to minimize the time ex-
pended by our staff and the out-of-pocket costs incurred in complet-
ing our work. I would also note that, in accordance with the terms
of our letter of February 26, 1980, you were regularly and accurately
informed of the status of our work and the balance of our fees and
expenses.
We have been extremely pleased to be associated with this project and
to have worked with you personally in this regard. We look forward
to favorable action by the Commission in the formal authorization for
payment of the outstanding balance of our fees and expenses and your
personal endorsement of such action.
IIG/br
41-
Very truly yours,
LAVENTHOL & HORWATH
Irwin I. Glick
Senior Principal
11
Oc�fvlj,�.�.
F OL, LO
�Vll