Commission Memorandum 182-87( FLORIDA 33,1.:39',
"VACATIONLAND U.S.A."
OFFICE OF THE CITY MANAGER CITY HALL
ROB W. PARKINS 1700 CONVENTION CENTER DRIVE
CITY MANAGER TELEPHONE: 673-7010
:
March 18, 1987
DATE:
TO: Mayor Alex DaD
Members of i
FROM: Rob W. Par
SUBJECT: ION PRO3ECT
Items C-q-E, C-q-F, C-I~-G and C-q-H concern the Metropolitan Dade County Convention
Center Expansion Project. These items allow for the advance refunding of the existing
County bonds, they authorize to engage Laventhol and Horwath for the update of the
Convention Center Development Tax Revenues, the approval of additional issuance of
County bonds in an amount not to exceed $½.S million and the amending of the Interlocal
Agreement pursuant to the Tax Reform Act of 1986. Each item is a required ingredient to
obtaining additional funds to complete the expansion project and will yield approximately
$7.5 million in new monies for the project.
A brief explanation of each item is listed below:
ITEM C-~-E, AMENDMENT TO THE INTERLOCAL AGREEMENT
This resolution amends the Interlocal Agreement by and between Dade County, Florid~ and
the City of Miami Beach, Florida, for the financing of expansions and improvements to the
Miami Beach Convention Center. There are two covenants which need to be added to the
Agreement based on the Tax Reform Act of P.)86. The first is a covenant of the City of
Miami Beach NOT to enter into any contracts which would violate any of the requirements
established by the Internal Revenue Service (IRS) in connection with the Tax Reform Act.
Specifically, the City may not enter into contracts that exceed five years, where at least
fifty percent (50%) of the compensation to any manager other than a local government is on
a periodic, fixed-fee basis, where any compensation is based on a share of net profits and
the governmental unit owning the building must be able to terminate the contract (without
penalty) at the end of a three-year period.
The second covenant concerns the existing Service America, Inc., contract. It requires that
the City agree that so long as the l~)gSA Series of County Bonds are outstanding, the fees
paid to the City do not exceed twenty-five percent (25%) of the annual principal and
interest payment on all the outstanding bonds. It is estimated that the concession revenues
to the City from Service America will not violate this provision.
Attached for your review is a copy of the SUMMARY OF THE LAW provided to the
Administration from the County's Bond Council of Fine 3acobson Schwartz Nash Block &
England, P.A., giving a background and explanation of the changes required to the Interlocal
Agreement.
continued...
DATE3 - I
Commission Memorandum Page Two March 18, 1987
rrF:M C.-z~-F, APPROVING THE REFUNDING OF THE EXISTING CONVENTION CENTER
IF '.~'!~ry 1987, the County Administration requested Shearson Lehman Brothers to review
;: ': :,,ver~tion Center Bonds Series as to the ieasibility of an advance refunding. Shearson
L~'.i,'aa~n Brothers presented several alternatives to the structure of the refunding which
were accepted. The City and Co~ty Administration reviewed the alternatives with the
puvr~os~ oi obtaining any savings generated from the refunding up-front to provide additional
[t2,x~Zs ior the completion of the project. Currently, it appears that the advance refunding ol
~bv Cc,~r~ty bonds will provide approximately 5~ million in additional funds to the project.
l'[t~ County Finance Committee has reviewed the proposals and based on their
recommendation to the Commission, the Coun~ Commission has approved the advance
reiunding.
ITEM C-~-G~ REQUEST AND AUTHORIZATION TO SELL THE MAXIMUM AMOUNT
U")'~MITTED BY LAW NOT TO EXCEED $~.8 MILLION OF CONVENTION CENTER
CO~7~LETION BONDS
In accord with the bond indenture, the maximum amount ol parity completion bonds that can
be issued is $~.8 million. However, the amount will be deandent upon what the Convention
Center Development Tax revenues will support for the debt service payments. This amount
ca~mo~ be determined until there is an update to the feasibility study. Therefore, we are
requesting and authorizing the maximum amount allowed.
The Comty Finance Committee has reviewed the pr~osals and based on their
recommendation to the Commission, the County Commission has preHminarily approved the
issuance of the additional bonds.
ITEM C-t~-H~ WAIVER OF FORMAL BID PROCEDURES~ AWARD OF CONTRACT TO
LAVENTHOL AND HORWATH TO COMPLETE AN UPDATE OF THE CONVENTION
CENTER FINANCIAL FEASIBILI~ STUDY
As you are aware, the firm of Laventhol and Horwath completed the initial feasibility study
*' ~ ~:~'~e expansion ol the Convention Center and completed the financial feasibility study for
the Zssuance of the County bonds. In order to condud the advance refunding ~d issue
add~qonal bonds, the financial aspect of the study must be updated. It is requested that the
City waive formal bidding procedures and award the contract for the update to Laventhol
~,~nd Harwath based on their past performance for the Convention Center Expansion Project.
I'he cos~ of the update will be $20,000 plus reimbursables not to exceed $2,000. Funds are
a'¢ai l,:~bXe in the City's Convention Center Development Tax Fund Account.
ADSglN!STRATION RECOMMENDATION:
Tt-:c; Administration recommends that the City Commission approve the resolutions.
RW P:CBT:jh
Attachments