The URL can be used to link to this page

Home My WebLink AboutSEOPW-CRA-M-04-0056• • ITEM 16, 6/28/04 RESOLUTION NO. SEOPW/CRA R- OMNI/CRA R- A JOINT RESOLUTION OF THE BOARDS OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST AND OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCIES ("CRAS") AUTHORIZING THE EXECUTIVE DIRECTOR. TO PAY CIVIL-CADD ENGINEERING, INC., THE SUM OF $70,000, IN FULL AND COMPLETE SETTLEMENT OF ANY AND ALL CLAIMS AND DEMANDS AGAINST THE CRAS FOR THE CASE CIVIL-CADD ENGINEERING, INC., V. SOUTHEAST OVERTOWN/PARKWEST COMMUNITY REDEVELOPMENT AGENCY AND OMNI COMMUNITY REDEVELOPMENT AGENCY, CASE NO. 03 11455 CA-02, UPON EXECUTION OF A GENERAL RELEASE RELEASING THE CRAS AND THEIR PRESENT AND FORMER OFFICERS, AGENTS, AND EMPLOYEES FROM ANY AND ALL CLAIMS AND DEMANDS; FUNDS TO BE ALLOCATED AS FOLLOWS: $63,000 FROM SEOPW TAX INCREMENT FUND, "PROFESSIONAL SERVICES - OTHER," ACCOUNT CODE NO. 689001.550108.6.270, AND $7,000 FROM OMNI TAX INCREMENT FUND, - "PROFESSIONAL SERVICES - OTHER," ACCOUNT CODE NO.. 686001.590320.6.270. NOW, THEREFORE, BE IT RESOLVED BY THE BOARDS OF DIRECTORS OF SOUTHEAST OVERTOWN/PARK WEST AND THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCIES OF THE CITY OF MIAMI, FLORIDA: Section 1. The Executive Director of the Southeast Overtown/Park West and the Omni Redevelopment District Community Redevelopment Agencies ("CRAS") is hereby authorized to pay SEOPW/CRA ONM/CRA Page 1 of 3 ",�4-- J6 - j 4 — 32 Civil-CADD Engineering, Inc., without admission of liability, the sum of $70,000, in full and complete settlement of any and all claims and demands against the CRAB, for the case Civil-CADD Engineering, Inc., v. Southeast Overtown/Park West Community Redevelopment Agency and Omni Community Redevelopment Agency, Case No. 03-11455 CA-02, upon execution of a general release releasing the CRAB and their present and former officers, agents, and employees from any and all claims and demands. Section 2. Funds shall be allocated as follows: $63,000 from SEOPW Tax Increment Fund, "Professional Services - Other," Account Code No: 689001.550108.6.270 and $7,000 from Omni Tax Increment Fund, "Professional Services - Other," Account Code No: 686001.590320.6.270. Section 3. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 28th day of June, 2004. ATTEST: PRISCILLA A. THOMPSON CLERK OF THE BOARD ARTHUR E. TEELE, JR., CHAIRMAN SEOPW/ CRA oWd / CRA Page 2 of 3 4- Jj 4 - 32 APPROVED AS O FO M CORRECTNESS: 1/4 ALE J D O V REL GE C SEL CCM : r : j by SEOPW i Cm° Page 3 of 3 ej 4- 56 OhM/CRA ,j4- 32 • • SOUTHEAST OVERTOWN/PARK WEST AND OMNI COMMUNITY REDEVELOPMENT AGENCIES INTER -OFFICE MEMORANDUM To: Chairman Arthur E. Teele, Jr. and Members of the CRA Board of Directors From: Frank K. Rollason Executive Director CRA Board of Directors Meeting June 28, 2004 ITEM 16 Date: ja✓1,i 1 t, ,:t File: Subject: Litigation Settlement of Civil-CADD Engineering, Inc. v. Southeast Overtown/Park West Community Redevelopment Agency and Omni Community Redevelopment Agency Case No. 03-11455-CA-02 References: Enclosures: Resolution, Supporting Documentation Attached please find a copy of the City Attorney's Settlement Memorandum recommending payment in the amount of $70,000 in complete settlement of the above referenced litigation. SEOPW/CRA ®NiNilCRA �,�4- 56 4- 32 _n c\ ® 0 AGENDA ITEM • FINANCIAL INFORMATION FORM CITY OF MIAMI COMMUNITY REDEVELOPMENT AGENCY EOPW CRA OMNI CRA (if pplicable) CRA Board Meeting Date: June 28, 2004 CRA Section: Administration Brief description of CRA Agenda Item: Litigation Settlement with Civil CADD Engineering, Inc. in the TOTAL AMOUNT OF $70,000 Funding Source: SEOPW TIF, "Professional Services — Other" (90% OF $70,000 Project Number if applicable): 689001 4 YES, there are sufficient funds in Line Item: Index Code: 550108 Minor: 270 Amount: $63,000 Funding Source: OMNI TIF, "Professional Services —Other" (10% OF $70,000 Project Number if applicable): 686001 J YES, there are sufficient funds in Line Item: Index Code: 590320 Minor: 270 Amount: $7,000 NO (Complete the following source of funds information): Amount budgeted in the line item: $ Balance in the line item: $ Amount needed in the line item: $ Sufficient funds will be transferred from the following line items: ACTION I ACCOUNT NUMBER TOTAL Project No./Index/Minor Object From $ To $ From $ To $ Comments: Approved by: Date: 6 �� CRA Executive Director/Designee APPROVALS Verified b . Ver y: CRA Accounti g Sectl n CRA F a e Section Date: ��o�. Date: SEOPW/CRA ONMICRA 0 4 — 56 e)4— 32 E 0 CITY OF MIAMI CITY ATTORNEY'S OFFICE MEMORANDUM TO: Distribution List FROM: Charles C. Mays, Assistant City Attorney DATE: June 1, 2004 RE: Civil-CAAD Engineering, Inc. v. Southeast Overtown/Parkwest Community Redevelopment Agency and Omni Community Redevelopment Agency Case No.: 03-11455 CA-02 Claim No. 000757-001694-EO-01 CONFIDENTIAL: THIS DOCUMENT IS NOT SUBJECT TO DISCLOSURE AS A PUBLIC RECORD UNTIL SO NOTIFIED TO THE CONTRARY BY THE CITY ATTORNEY'S OFFICE. This document was prepared by the Miami City Attorney to reflect mental impressions, conclusions, and litigation strategy in pending civil litigation cases and administrative proceedings involving Civil-CADD Engineering, Inc., v. Southeast Overtown/Parkwest Community Redevelopment Agency and Omni Community Redevelopment Agency, Case No. 03-11455 CA-02. This document is exempt from Public Records disclosure as an attorney work -product until such time as all litigation and administrative proceedings involving said parties have been concluded. [Section 119.07(3)(1), Florida Statutes (2003)]. For the reasons set forth below, I recommend that this lawsuit brought by attorney Michael D. Brown on behalf of Civil-CADD Engineering, Inc., be settled for $70,000 (Seventy Thousand Dollars), without admission of liability. On July 24, 2000, the Board of Directors of the Southeast Overtown/Parkwest Community Redevelopment Agency and the Omni Community Redevelopment Agency (hereinafter the "CRA"), respectively, adopted resolutions approving the selection of Civil CADD Engineering, Inc. ("CADD") to provide miscellaneous civil engineering services, including general consulting services, for projects to be undertaken by the CRA. In accordance with the resolutions, the CRA and CADD executed a contract on August 29, 2000, entitled "Professional Service Agreement (Miscellaneous Civil Engineering and Other Professional Services)." The contract required CADD to perform work and SEOPW/CRA OWU/CRA ,J4- 56 s, _ 32 • Civil-CADD Engineering Settlement Memorandum Page 2 other services pursuant to work orders issued by the CRA. The contract further required work orders to be signed by the CRA's executive director and comptroller. In May 2003, CADD filed suit against the CRA for breach of contract, open account, account stated, and promissory estoppel, seeking $90,887.22 in damages plus attorney's fees pursuant to § 57.105, Fla. Stat. The essential nature of the contract claims is the contention that CADD performed services under the contract, timely submitted invoices to the CRA, and the CRA failed to object to the invoices or to pay them. In response to the lawsuit, the CRA counter -sued, essentially claiming a failure of consideration with the contention that CADD did not deliver plans and specifications. CADD denied the allegations of the counterclaim. The invoices upon which CADD premises its claims total $94,675.74, and therefore is $3788.52 more than what it is suing for. CADD's demand for $90;887.22 'is based upon, a pre -suit admission by the CRA. More specifically, after Frank Rollason, the CRA's current Executive Director, was appointed in January 2003, Mr. John King, CADD's president, complained to him about outstanding invoices. Mr. Rollason instructed the CRA's consultant, T.Y. Lin International/H.J. Ross Associates ("HJR"), to review the invoices and associated materials. In a series of letters to the CRA issued in April 2003, Charles Deeb, HJR's vice president,jeported that. a review of the- subject_ _inyoices,had been completed,, that the invoices were supported by signed -work-orders and., time -sheets. The total amount due, according to the CRA's consultant was $90,887.22 (which is the amount sued for). In certain instances HJR's review noted, "there are deliverables that are still outstanding...."' This observation, coupled with the fact that the CRA could not find any plans or specifications for various projects for which CADD had been engaged, fueled the CRA's counter -suit that CADD had not provided plans/specifications for Jackson Soul Food, Two Guys Restaurant, and Just Right Barbershop. As noted above, CADD denies that it failed to deliver such plans/specifications. Indeed, CADD's president has testified that plans/specifications were delivered in May and August 2001. The CRA's position on this point is problematic. In the first place, when Mr. Rollason came into office he found the CRA's record -keeping system to be haphazard at best. This is best illustrated by the following colloquy from Mr. Rollason's deposition: Q. Let's talk about the condition of the records of the CRA that you found when you became the CRA director. Generally, did you find that the records were in order at the CRA when you walked in there? Could you locate all the documents you needed to locate? A. No. ' HJR's representative has testified that he concluded deliverables were outstanding because the CRA could not find them. S ,OPW /C Civil-CADD Engineering Settlement Memorandum Page 3 Q. Tell me some of the problems and the deficiencies that 0 existed regarding records when you got there? A. There was not a connection between a project and the finances. There were no project files in existence. There were folders that would have a myriad of items thrown in them, but if you were to open up a project folder, which I typically identify as a project folder, and be able to look and see a copy of the contract and a copy of the work orders and a copy of the notice to proceed and a copy of change orders and a copy of invoices and a copy of draws and correspondence and that type of thing, they do not exist. Q. Was there a file that included — or was there a file for signed and sealed documents? A. No. Q. Were there any signed and sealed documents? A. Yes. I mean, you would run across them haphazard, as you — there would be some hanging on a plans rack that had no relationship to a project, but you would find something that's signed and sealed. There were some that would be in the notebook, that would be folded up and put in a notebook, and you'd be looking in a notebook dealing — maybe with specifications of a project, and you'd find a set of signed and sealed plans in there. So there was not really a rhyme or reason as to how they were put together. The CRA's records were such that Mr. Rollason could not rely upon a master index or cross index, or any type of document that would provide a history of what the CRA had been working on or what it had received from CADD. Consequently, the CRA' inadequate record -keeping system undermines its claim that CADD did not deliver plans/specifications. And, even more devastating to the CRA is the fact that after the CRA moved to its new location, a CRA employee by happenstance looked into an unlabelled box and found the plans/specifications for Jackson Soul Food. Based on the foregoing, it is clear that CADD will prevail on its contract claims and defeat the CRA's counter -claim. It is also highly probable that the court will find that attorney's fees are warranted under § 57.105, Fla. Stat.; particularly in view of the admission arising from HJR's review. Mr. Rollason is in agreement with this proposed resolution. Accordingly, I recommend settlement of this compromised contract claim for 0 $70,000. SE®PW/CRA OWU/CRA 4_ 0)4— 32 • • Civil-CADD Engineering Settlement Memorandum Page 4 The CRA, under Mr. Rollason, has instituted a record -keeping system that provides more accountability and ycfssibility of records. a jVJ Warren Bittner, Assistant City Attorney hristopher A. Green, Assistant Of Attorney " �: `-< enry J. unnefeld, ssistant ity Attorney '3srge�/ Martinez- stave, Assistant City Attorney avo Regine'NI. Monestine, Assistant CtitAttorney _Tyrone Willia sistant City Attorney _iEOPW/CRA p /CRA ,-j4- 56 „j 32 0 Civil -CARD Engineering Settlement Memorandum Page 5 Julie O. Bru, Assistant City AttoPiw Dania Carrillo, Administrator, Risk AaAgement W021/CCM • • SEOPW/CRA OAU/CRA �J, 4- 56 pj4- 32