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HomeMy WebLinkAboutMemorandumCITY OF MIAMI OFFICE OF THE CITY ATTORNEY MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Victoria Mendez, City Attorney ,j a DATE: March 12, 2020 RE: Proposed Settlement for City Commission Meeting — March 12, 2020 City of Miami v. Consul -Tech Transportation, Inc. Case No. 17-29978 CA 01 File No.: 7153 The attached proposed Resolution seeks authorization for settlement of all claims asserted by the City of Miami against Consul -Tech Transportation, Inc., in the amount of $100,000.00, for claims for breach of contract. The Office of the City Attorney has investigated and evaluated this case and has approved the recommendation of this settlement. Attachment(s) cc: Emilio T. Gonzalez, City Manager Christopher Rose, Director, Office of Management and Budget Miriam Santana, Agenda Coordinator VM/BLM/CHG/vja f; City of Miami City Hall 3500 Pan American Drive Legislation Miami, FL 33133 www.miamigov.com Resolution Enactment Number: R-20-0066 File Number: 7153 Final Action Date:3/12/2020 A RESOLUTION OF THE MIAMI CITY COMMISSION ACCEPTING PAYMENT TO THE CITY OF MIAMI ("CITY") IN THE AMOUNT OF ONE HUNDRED THOUSAND DOLLARS ($100,000.00) FROM CONSUL -TECH TRANSPORTATION, INC. IN FULL SETTLEMENT OF ALL CLAIMS AND DEMANDS IN THE CASE OF CITY OF MIAMI V. CONSUL -TECH TRANSPORTATION, INC., CASE NO. 17-29978 CA 01, PENDING BEFORE THE CIRCUIT COURT OF THE ELEVENTH JUDICIAL CIRCUIT IN AND FOR MIAMI-DADE COUNTY, FLORIDA, PURSUANT TO THE TERMS OF A SETTLEMENT AGREEMENT AND RELEASE ("AGREEMENT"); AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT AND ANY AND ALL OTHER NECESSARY DOCUMENTS, ALL IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, TO EFFECTUATE THE SETTLEMENT. WHEREAS, Consul -Tech Transportation, Inc. ("Consul -Tech") entered into a contract with the City of Miami ("City") to perform engineering and design services in relation to the Palm Grove Roadway Improvement Project ("Project") which encompassed roadway improvements from N.E. 58th Street to N.E. 791h Street between Biscayne Boulevard and N.E. 4th Court; and WHEREAS, Acosta Tractor, Inc. ("Acosta") entered into a contract with the City to serve as the City's general contractor for the Project; and WHEREAS, the Project had numerous delays in the substantial completion due to the defective work of Consul -Tech; and WHEREAS, in March 2014, Acosta sued the City for delay damages ("Acosta Lawsuit") claiming that the City was responsible for the purported delays; and WHEREAS, the City tendered the defense of the Acosta Lawsuit to Consul -Tech pursuant to the indemnification clause within the Consul -Tech contract; and WHEREAS, Consul -Tech rejected the City's tender to indemnify and defend the City in the Acosta Lawsuit; and WHEREAS, the City filed a lawsuit against Consul -Tech in the Eleventh Judicial Circuit in and for Miami -Dade County, Florida for breach of contract ("City's Lawsuit") on December 29, 2017 seeking damages for Consul-Tech's failure to defend and indemnify the City in the Acosta Lawsuit; and WHEREAS, the City and Consul -Tech have agreed to settle all claims in the City's Lawsuit provided that Consul -Tech pays the City $100,000.00 and the parties exchange mutual releases of all claims arising from or relating to the City's Lawsuit; and WHEREAS, the City Attorney's Office has investigated the claims and pursuant to Sections 18-221 through 18-232 of the Code of the City of Miami, Florida, as amended, recommends that said claim and lawsuit be settled for the total sum of one hundred thousand dollars ($100,000.00), including any claim for attorneys' fees; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as is fully set forth in this Section. Section 2. Payment to the City in the amount of $100,000.00 from Consul -Tech in full settlement of all claims and demands in the case of City of Miami v. Consul -Tech Transportation, Inc., Case No. 17-29978 CA 01, pending before the Circuit Court of the Eleventh Judicial Circuit in and for Miami -Dade County, Florida, pursuant to the terms of a Settlement Agreement and Release ("Agreement"), is accepted. Section 3. The City Manager is authorized' to execute the Agreement and any and all other necessary documents, all in a form acceptable to the City Attorney, to effectuate the settlement. Section 4. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: r i ria i "nd- ezy Attor ey 2/2712020 Pursuant to the resolution, this item became effective immediately upon adoption by the Commission. ' The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to, those prescribed by applicable City Charter and City Code provisions.