HomeMy WebLinkAboutR-01-0817J-01-663.
7/23/01
RESOLUTION NO.
A RESOLUTION OF THE MIAMI CITY COMMISSION,
WITH ATTACHMENT (S) , AUTHORIZING THE CITY
MANAGER TO ACCEPT AND E'XECU'TE A SETTLEMENT
AGREEMENT, IN SUBSTANTIALLY THE ATTACHED
FORM, PAYING THE SUM OF $1.6 MILLION AND
ENTERING INTO A NEW CONSTRUCTION CONTRACT
TO COMPLETE INSTALLATION OF SEWAGE PIPES,
IN AN AMOUNT NOT TO EXCEED $842,067.56, IN
FULL AND -COMPLETE SETTLEMENT OF ANY .AND
ALL CLAIMS AND DEMANDS, FOR THE CASE OF
RIC -MAN INTERNATIONAL, INC. VS. UTILITY
DIRECTIONAL DRILLING, INC., AND CITY OF
MIAMI, IN THE ELEVENTH JUDICIAL CIRCUIT 11\1
AND FOR MIAMI -DADS COUNTY, FLORIDA, CASE
NO. 98 -13 051. - CA (13) , UPON EXECUTION OF THE
SETTLEMENT AGREEMENT, SETTING FORTH A
SCHEDULE FOR PAYMENT, ALLOCATING FUNDS, IN
THE AMOUNT OF $1.6 MILLION, FROM THE SELF-
INSURANCE AND INSURANCE TRUST FUND,
ACCOUNT CODE NO. 515001.624401.6.661, AND
FUNDS, IN T'I3E AMO[JN'.I' NOT TO EXCEED
$842,067.56, FROM CAPITAL IMPROVEMENT
PROJECT NO. 351263, FOR SAID SETTLEMENT
AND CONTRACT.
WHEREAS, Ric -Man has offered to settle the remaining
Litigation including the appeal against the City subject to
certain terms and conditions as set forth in a Settlement
Agreement; and
WHEREAS, the City Attorney's Office recommends that said
lawsuit be settled for, the sum of $1.6 Million and that a new
ATTACHMENT Vro)
couTAINED
s t esia� -
I: �ccc�o tx�
`+ JUL 262001
11,
0
construction
contract be
executed
to
complete installation of
sewage pipes,
for a total
amount not
to
exceed $842,067.56;
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 Manager is authorized to accept and
execute a Settlement AgreeMmci:t, in suhstantia.11y the attached
form, paying the sum of $1.6 Million and entering into a new
construction contract to complete installation of sewage pipes,
in an amount not to exceed $842,067.56, in full and complete
settlement of any and all claims and demands, for the case of
RIC -MAN INTERNATIONAL, T..NC. VS. UT11:,TTY DIRECTIONAL DRILLING,
INC., AND C.T.TY OF MIAMI, in the Eleventh Judicial Circuit in and
for Miami -Dade County, Florida, Case No. 98-13051-CA(13), upon
execution of the Settlement Agreement, setting forth a schedule
for payment, with funds allocated, in the amount of $1.6 Million,
from the Self -Insurance and Insurance Trust Fund, Account Code
No. 515001.624401..6.661., for the settlement, arid funds, in the
amount not to exceed $842,067.56, allocated from Capital
Improvement Project No. 351.283, for the contract.
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Section 3. This Resolution shall beccme effective
immediately upon its adoption and signature of the :Mayor.11
PASSED AND ADOPTED this 26th _ day of July 2001.
JOE CAROLLO, MAYOR
In accordance with Miami Code Sec. 2-36, since the Mayor did not indicate approval of
chis legislation by signing it in the designated pla provided, .aid legislation now
ATTEST: becomes effective with the elapse of t {10) day • r m tho da I Commissl ion
regarding same, without the Mayo ercisjng o.
WALTER J---., F0EMAN Wa r J. an, Ity Clerk
CITY CLERK
APPROVED A,8 T /11'ORM AMOOCORRECTNESS.eZ
ALF N V=ARELLO
CI T RNEY
W551 .HH:BSS
'-� if the Mayor does not sign this FResol.iition, it shall become effective at
the and of ten calendar days from, the date it was passed and adopted. If.
the Mayor vetoes this Resolution, it shall become effective immediately
upon overrido of the veto by the City Commission.
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SETTLEMENT AGREEMENT
Ric -Man International, Inc. ("Ric -Man" hereinafter) and The City of Miami (hereinafter
"City") hereby agree to settle in full the above -styled action as set lbrth below.
In exchange for the mutual consideration described below, the receipt and sufficiency of
which are hereby acknowledged, the parties agree as follows:
City hereby agrees to pay the sum of $200,000.00 to Ric -flan within fifteen clays
from the execution and approval of this agreement. The City will pay an additional $500,000 to Ric -
Man within 30 days after written notice of the drilling of the pilot hole.
2. City hereby agrees to pay the additional sum of $700,000 to Ric -Man immediately
upon receipt bythe City of money from Miami -Dade County as proceeds pursuant to the Agreement
for .Sanitary Sewage Facilities between Miami -Dade County and City enterd. into on about April 2,
1998 and executed on March 13 and April 2, 1998 by the City and Miami -Dade County. However,
in any event, the City shall pay Ric -Man the additional sum of $700,000 called for herein no later
than 90 days after Ric -Man has successfully performed the horizontal directional drilling operation
and installation of the sewage pipe as called for herein and approval of same by the Miami -Dade
Water and Sewer Department regardless of whether the City has received money pursuant to the
Agreement for Sanitary Sewage Facilities between Miami -Dade County and City on about April 2,
1998.
3. Ric -Man shall complete the installation of the 16 -inch High Density Polyethylene
Pipe Crossing under a Design Build concept of construction for the sum se: forth in the contract
proposal submitted to the City Director of Public Works on March 16, 2001, which reflects art
additional cost to complete this project of $642,067,56 plus engineering costs not to exceed $200,000.
The City shall pay the invoice for services rendered by the engineer within 30 days of receipt by the
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City of that invoice or those invoices. 'file total amount due from the City pursuant to that proposal
will therefore not exceed $842,067.56. No separate amount will be paid for the "balance in contract"
reflected in the proposal. An additional $200,000 shall be paid within thirty days of the completion of
this project for retainage, markup and overhead arguably due tinder the original contract. Ric -Man
agrees to obtain an extension of the performance bond on the underlying project. If such extension is
not possible, Ric -Man will obtain at its expense a replacement performance bond with substantially
the sante terms.
4. The City hereby does sell, assign, transfer, and set over unto Ric -Man all rights, title,
interest in and to actions, causes, causes of action, suits, debts, dues, sums of money, accounts,
reckonings, bonds, bills, covenants, contracts, controversies, agreements, Warranties, promises,
variances, trespasses, damages, j udgments, executions, claims and demands whatsoever in law or in
equity, from the beginning of the world to the (late hereof by the City against Eleanor Carney
Engineering Associates, Inc. and Carney-Ncuhaus, Inc., their employees, officers, agents,
subconsultants, and successors, and the City does give and grant to Ric -Man the full power and
authority to demand and receive money and other consideration from Eleanor Carney Engineering
Associates, Inc. and Camey -Neuhaus, Inc., their employees, officers, agents, subconsultants, and
successors and to give discharge of same or anypart thereof. If in pursuing an action against Eleanor
Carney Engineering Associates, Inc. and Carney -Neuhaus, Inc., their employees, officers, agents,
subconsultants, and successors, Ric -Man receives any monetary proceeds from the action, and alter
deduction of all expenses, costs, court costs and attorneys fees, Ric -Man shatl retain fifty percent of
such proceeds and pay over to the City the other fifty percent of the proceeds. The attorneys fees,
expenses, court costs and other costs are limited to those specifically related to the new action
against Eleanor Carney Engineering Associates, Inc. and Carney -Neuhaus, Inc. and shall be limited
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to a maximum of 25% of the total recovery against those entities. Ric -Man will insure that the
attorney and firni representing the interests of the City will not have a conflict of interests.
5. Upon execution of this Settlement Agreement by all parties, including Utility
Directional Drilling, Inc., the parties shall execute and file with the Miami -Dade County Circuit
Court a Notice of Dismissal With Prejudice of the complaint pending in Case No. 98-13051 CA 13.
All parties to this Agreement shall execute general releases relating to the transactions reflecting in
Case No. 98-13051 CA 13. The Circuit Court in the alcove referenced matter shall retain jurisdiction
to enforce the terms of this Settlement Agreement,
G. Each party to the above -styled litigation shall bear its own attorney's fees and costs.
7. This Settlement Agreement may be signed in counterparts. Facsimile signatures will
be accepted as original.
8. Florida law shall govern the interpretation of this agreement. Venue for any action
regarding this agreement shall be Miami -Dade County, Florida,
tN WITNESS WHE1tEOF, the parties have executed this Agreement on (lie date indicated
above, and each of (he undersigned personally represents and warrants that they have the full, right,
power, and authority to execute this Agreement on behalf of the respective parties.
ATTEST: T14E CITY OF MIAINII
By: By; `
Walter J, Foeman, City Clerk Carlos A. Girnenez, City Manager
ATTEST: RIC -MAN INTERNATIONAL, INC.
By: By:
Print Name: Print Munre:
Title: Title:
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ATTEST:
By: - -- --
Print Name:
Title:
APPROVED AS TO FORM AND
CORRECTNESS
Alejandro Vilarello, City Attorney
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M
•
UTILITY DIRECTIONAL
DRILLING, INC.
Print Name:
Title:
APPROVED AS TO INSURANCE
REQUIREMENT
Mario Soldevilla, Administrator
Risk Management Division
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CITY OF MIAMI S12
CITY ATTORNEY'S OFFICE
MEMOI�M
TO: Mayor and Members ofthe tty Co c fission
FROM: Alejandro Vilarello, Ci Atto
DATE: July 23, 2001
RE: Authorization for City M ger to accept and execute a Settlement Agreement for
the case of Ric -Man Int national, Inc. vs. Utility Directional Drilling, Inc. & City
of Miami, Case No. 98 -13051 -CA (1.3), (J-01-661)
The attached Resolution authorizes the City Manager to accept and execute a Settlement
Agreement paying $1.6 Million to Ric -Man International, Inc., and entering into a contract to
complete installation of sewage pipe, in the amount not to exceed $842,067.56, to settle the Ric -
Man International, Inc. vs. Utility Directional Drilling, Inc. & City of Miami, Case
No, 98 -13051 -CA (13) (the "Lawsuit").
On November 6, 1998, Ric -Man International, Inc., filed the Lawsuit for the City's
breach of contract to complete installation of sewagc pipe to Watson Island to existing sewage
linesonthe mainland. Ric -Man claimed that the City of Miami through its outside consultant
required work and terms outside of the original agreement and improperly delayed completion of
the project.
Ric -Man has offered to settle the lawsuit and complete the sewage line installation
needed on an expedited basis. The City Attorney's Office recommends that said Lawsuit be
settled by paying S 1.6 Million and entering into the new agreement not to exceed $842,067.56.
Funds, in the amount $1.6 Million, are available from the Self -Insurance and Insurance
Trust Fund, Account No. 515001.624401.6.661, and funds, in the amount of $842,067.56, from
Capital Improvement Project No. 351283, for said settlement and contract.
W598:I3SS
c: Carlos A. Gimenez, City Manager
Elvi Alonso, Agenda Coordinator
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