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HomeMy WebLinkAboutR-03-0374J-03-110 04/10/03 RESOLUTION NO. 03— 374 A RESOLUTION OF THE MIAMI CITY COMMISSION DIRECTING THE CITY ATTORNEY TO TAKE ACTIONS NECESSARY, INCLUDING THE ENGAGEMENT OF LEGAL COUNSEL, AGAINST SCHNARS ENGINEERING CORPORATION, A FLORIDA CORPORATION, TO OBTAIN RELIEF OR TO REMEDY ANY LOSSES OR DAMAGES SUSTAINED BY THE CITY RELATED TO ALLEGATIONS IN GREGORI INTERNATIONAL OF FLORIDA, INC. VS. CITY OF MIAMI, IN THE CIRCUIT COURT OF THE ELEVENTH JUDICIAL CIRCUIT IN AND FOR MIAMI-DADE COUNTY, FLORIDA, CASE NO. 97-16935 CA (02) OR, IN THE ALTERNATIVE, ALLOWING SCHNARS ENGINEERING CORPORATION, A FLORIDA CORPORATION, TO JOIN THE BINDING ARBITRATION BETWEEN THE CITY OF MIAMI AND BUNKERS OF MIAMI, A FLORIDA JOINT VENTURE. WHEREAS, the City of Miami contracted with Bunkers of Miami, a Florida Joint Venture ("Bunkers") as project manager for the renovation of the Melreese Golf Course pursuant to a Management Agreement dated January 25, 1996 ("Management Agreement"); and WHEREAS, Schnars Engineering Corporation, a Florida corporation, worked on the renovation of the Melreese Golf Course; and WHEREAS, Gregori International of Florida, Inc., the contractor for the Melreese Golf Course renovation project, CITY C0VnCSSI0N MEETING OF APR 1 PU 2003 Res©luaiOn ao- 0 3. 3'7 4 filed a claim and lawsuit against the City of Miami, in the Circuit Court of the Eleventh Judicial Circuit, Case No. 97-16935 CA (02), in Miami -Dade County, Florida; and WHEREAS, the above claim and lawsuit filed by Gregori International of Florida, Inc., were investigated by the Tort Committee of the City Attorney's Office and the Division of Risk Management pursuant to Section 18-232 of the Code of the City of Miami, Florida, as amended, which created the City of Miami's Self -Insurance and Insurance Trust Fund and said Offices recommended that said claim and lawsuit be settled for the sum of $975,000; and WHEREAS, settlement of the above claim and lawsuit filed by Gregori International of Florida, Inc. against the City of Miami was approved by the City Commission by Resolution No. 02-173, whereby the Director of Finance was authorized to pay Gregori International of Florida, Inc. the sum of $975,000 ("settlement amount") in full and complete settlement of any and all claims and demands against the City of Miami, for the case Gregori International of Florida, Inc. vs. City of Miami, in the Circuit Court of the Eleventh Judicial Circuit in and for Miami -Dade County, Florida, Case No. 97-16935 CA (02), to be paid as follows: $900,000 upon the execution of a general release releasing the City of Miami and its present and former officers, agents, attorneys and employees from any and all claims and Page 2 of 5 03— 374 demands, and $75,000 upon Gregori International of Florida, Inc.'s compliance with an escrow agreement, in a form acceptable to the City Attorney, between Gregori International of Florida, Inc. and the City of Miami, with funds allocated from the Self - Insurance and Insurance Trust Fund, Index Code No. 515001.624401.6.661; and WHEREAS, the City of Miami has suffered damages as a result of Bunkers' breaches of the Management Agreement, Schnars Engineering Corporation's work on the Melreese Golf Course renovation project, and the lawsuit filed by Gregori International of Florida, Inc., and now wishes to obtain relief and/or to remedy its losses or damages suffered as a result of said breaches, work and lawsuit; and WHEREAS, Bunkers and Schnars Engineering Corporation, a Florida corporation have not indemnified the City of Miami for the settlement amount or for the City's damages, costs and attorney's fees related to the above claim and lawsuit filed by Gregori International of Florida, Inc.; and WHEREAS Bunkers and the City of Miami have agreed to resolve the City's claims through binding arbitration and have executed an Arbitration Agreement dated April 9, 2003 ("Arbitration Agreement"); and WHEREAS Schnars Engineering Corporation, a Florida corporation, is not a party to the Arbitration Agreement; Page 3 of 5 03. 374 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 if fully set forth in this Section. Section 2. The City Attorney is directed to take any and all actions, necessary or permitted, including the engagement of legal counsel, against Schnars Engineering Corporation, a Florida corporation, to protect, preserve and defend the interests of the City of Miami, including but not limited to any action authorized by law or in equity, to obtain any relief or to remedy any losses or damages to the City of Miami caused in any way by any party which may have been sustained against the City of Miami by Gregori International of Florida, Inc. Section 3. Alternatively, the City Attorney is directed to join the City of Miami's claims against Schnars Engineering Corporation, a Florida corporation, in the same arbitration as the City's claims against Bunkers, upon Schnars Engineering Corporation, a Florida corporation's written agreement to submit to binding arbitration. Page 4 of 5 03-- 374 Section 4. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.'/ PASSED AND ADOPTED this 10th ATTEST: PR14CILLA A. THOMPSON CITY CLERK � _ AND CORRECTNESS IVEJANDRO VILAREL ITY ATTORNEY W6883:MJS:BSS day of April , 2003. �i If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. Page 5 of 5 03. 374 CITY OF MIAMI CITY ATTORNEY'S OFFICE MEMORANDUM TO: Mayor and Members of the C' C ssion FROM: Alejandro Vilarello, City tt DATE: March 3, 2003 RE: Gregori Internat' of orida, Inc. vs. City of ami Case No. 97-16 5 C (02) Eleventh Judicial Circuit Court in and for Miami -D e County (J-0�3-110) The attached proposed resolution directs the City Attorney to take any and all actions, necessary or permitted, including the engagement of legal counsel, against Bunkers of Miami, a Florida Joint Venture, a/k/a Bunkers of Miami, Inc., a/k/a Bunkers of Miami Joint Venture a/k/a Bunkers of Miami ("Bunkers") and other parties, to protect, preserve and defend the interests of the City of Miami, including but not limited to any actio authorized by law or in equity, to obtain any relief or to remedy any losses or damages to the City of Miami related to the lawsuit against the City of Miami by Gregori International of Florida, Inc., Gregori International of Florida, Inc. vs. City of Miami, in the Eleventh Judicial Circuit Court, Case No. 97-16935 CA (02), as well as any losses or damages to the City of Miami related to Bunkers' breaches of the Management Agreement dated January 25, 1996 ("Management Agreement"). The City contracted with Bunkers as the project manager for the renovation of the Melreese Golf Course and to operate the Melreese Golf Course pursuant to the Management Agreement. The City was sued by the golf course contractor, Gregori International of Florida, Inc. ("Gregori") for breach of contract regarding the renovation project. The City settled the Gregori lawsuit for $975,000 (the "Settlement Amount") ($900,000 was paid to Gregori upon the execution of a general release releasing the City of Miami and its present and former officers, agents, attorneys and employees from any and all claims and demands, and $75,000 is to be paid upon Gregori's compliance with an escrow agreement). In addition to Bunkers' breaches of the Management Agreement alleged by Gregori in the litigation, Bunkers has breached the Management Agreement, among other things, by failing to defend the City in the Gregori lawsuit and by failing to indemnify the City for the settlement amount plus the City's damages, costs and attorney's fees related to the Gregori lawsuit. Bunkers has also failed to pay the City the semi-annual payments due under the Management Agreement on October 15, 2001 and thereafter. The arrearage on the quarterly payments as of October 1, 2002 is $412,500 and continues to increase. W824:MJS c: Joe Arriola, City Manager Elvi G. Alonso, Agenda Coordinator 03- 374