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SUMiviARY FORM
FILE ID:
Date: 10/14/2008
Commission Meeting D
Type: X Resolution Ordinance
x
Other Pocket Item
exo-G-(2—
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Requesting Department: Public Facilities
District Impacted: 2
Emergency Ordinance fl Discussion Ite
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, with attachment(s) rescinding Resolution No. 08-0542,
adopted September 25, 2008, in its entirety and substituting this resolution for it; 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 2nd Avenue, Miami, Florida; said agreement
further provides that in the event the City and Hyatt do not execute an amendment to the Hyatt Lease
or restate the Lease, to provide for the 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: 10,0c, L2,1 e5a ..5.3vocc. cooOOO
CIP Project No:
NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost: $0,00
Maintenance Cost: $0.00
Total Fiscal Impact: $100,000
CIP ft
If using or receiving capita
Grants fu
funds
Final Approvals
(SIGN AND DATE)
Budget 101 MI 09
Risk Management
Purchasig0 Iy Dept. Directo
Chief City Manager
Subject: Agreement with Hyatt Equitie, 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.
The letter agreement previously approved by the Commission provided that the City would not
have to reimburse Hyatt in the event we executed an amendment to the Hyatt Lease, a restatement of the
Lease or a management agreement to provide for the management and/or expansion of the Hyatt lease
area to include areas currently operated by the City and the University of Miami on or before June 30,
2009, to be effective January 1, 2010. Subsequent to the Commission meeting, Hyatt indicated they
could not accept full financial responsibility for this work in the event a management agreement is the
instrument used as opposed to an amendment or restatement of its Lease since management agreements
do not provide the same level of rights as a lease, including the ability to obtain financing. Therefore,
the Hyatt has requested we remove the language related to a management agreement.
In summary, the revised letter agreement provides that the City will reimburse Hyatt for 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 or restate the Lease to provide for the
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. In the event we do not accept this proposal, the City would have
to directly procure these services and seek reimbursement from the Hyatt for its share.
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