HomeMy WebLinkAboutSummary FormAGENDA ITEM SUMMARY FORM
FILE ID: 015-01100
Date: 9/2/2008
Commission Meeting Date: 9/25/2008
Requesting Department: Public Facilities
District Impacted: 2
RE.6
Type: ® Resolution ❑ Ordinance Li Emergency Ordinance n Discussion Item
❑ Other
Subject: Agreement with Hyatt Equities, LLC for Engineering Services related to the Replacement of
Three Chillers, a Cooling Tower, and Related Equipment at the Miami Convention Center Facility.
Purpose of Item:
A Resolution of the Miami City Commission authorizing the City Manager to execute a letter
agreement, in substantially the attached form, with Hyatt Equities, LLC, to provide authorization for
Hyatt to proceed with the engineering and design (Phase I) of the replacement of three centrifugal
chillers, a cooling tower and associated equipment at the Miami Convention Center ("Center") located
at 400 Southeast 2 Avenue, Miami, Florida; said agreement further provides that in the event the City
and Hyatt do not execute an amendment to the Hyatt Lease, restate the Lease or enter into a
management agreement, to provide for the management and/or expansion of its lease area to include
the areas currently operated by the City and the University of Miami on or before June 30, 2009, to be
effective January 1, 2010, the cost of Phase I shall be split between the City and Hyatt, each paying
50% of the cost, provided that the City's contribution for reimbursement will not exceed $100,000;
with funds to be allocated from the 2009 rental revenues to be paid by Hyatt to the City and with
terms and conditions as more particularly set forth in said letter agreement..
Background Information:
See attached.
Budget Impact Analysis
NO Is this item related to revenue?
YES Is this item an expenditure? If so, please identify funding source below.
General Account No:
Special Revenue Account No: 'oleo • 221610.534ao . ccoo. cacao
CIP Project No:
NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact:
$0.00
$0.00
$100,000
Final Approvals
(SIGN AND DATE)
CIP Budget � vlG ��►�+------tom q l►bt°3
If using or receiving capital funds
Grants Risk Management hl
Purchasing
Chief
Dept. Directo
City Manager
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Subject: Agreement with Hyatt Equities, LLC for Engineering Services related to the Replacement of
Three Chillers, a Cooling Tower, and Related Equipment at the Miami Convention Center Facility,
The City and Miami Center Associates entered into an Operations and Maintenance Agreement
("O&M Agreement") dated December 12, 1984 by and between the City and Miami Center Associates,
Ltd., predecessor -in -interest to Hyatt Equities. The O&M Agreement sets forth the operation and
maintenance obligations of the City and Hyatt as to their primary areas of responsibility as set forth
therein, and as required under the Lease. Pursuant to sections 7.3 and 7.4 of the lease agreement
between Miami Center Associates and the City dated September 13, 1979, as amended (as assumed by
Hyatt on June 26, 1997) (the "Lease"), the City is obligated to provide a working chiller and related
equipment for the Miami Hyatt Regency and the Miami Convention Center to remain operational. The
three centrifugal chillers, cooling tower, and related equipment is currently 26 years old and has likely
reached its useful life expectancy. Hyatt has estimated the cost of Phase I engineering and design
services to be no greater than $200,000, with each party paying 50% of the cost, provided that the City's
contribution for reimbursement will not exceed $100,000. In the event that the City and Hyatt execute an
amendment to the Hyatt Lease, restate the Lease or enter into a management agreement to provide for
the management and/or expansion of its lease area to include the areas currently operated by the City
and the University of Miami on or before June 30, 2009, to be effective January 1, 2010, then Hyatt
shall pay for one hundred percent (100%) of the Phase I project.
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