HomeMy WebLinkAboutR-96-0345J-96-213
4/23/96
RESOLUTION NO. 9 6- 345
A RESOLUTION AUTHORIZING THE DIRECTOR OF
FINANCE TO PAY KOSTMAYER CONSTRUCTION
COMPANY, I INC., WITHOUT ADMISSION OF
LIABILITY, THE SUM OF $636,710.93 (PAYABLE IN
TWO (2) INSTALLMENTS: THE FIRST IN THE AMOUNT
OF $477,533.00 PAYABLE WITHIN TEN (10) DAYS
OF THE EFFECTIVE DATE OF THIS RESOLUTION, AND
THE SECOND IN THE AMOUNT OF $159,177.93
PAYABLE ON JANUARY 2, 1997), IN FULL AND
COMPLETE SETTLEMENT OF ANY AND ALL CLAIMS AND
DEMANDS AGAINST THE CITY OF MIAMI, IN THE
UNITED STATES DISTRICT COURT, CASE
NO. 94 - 2463 - CIV- FERGUSON, UPON THE EXECUTION
BY KOSTMAYER CONSTRUCTION COMPANY, INC. AND
BY ITS SUBCONTRACTOR, GRAVES WRECKING AND
SALVAGE, INC., OF A GENERAL RELEASE, IN A
FORM ACCEPTABLE TO THE CITY ATTORNEY,
RELEASING THE CITY OF MIAMI FROM ANY AND ALL
CLAIMS AND DEMANDS; ALLOCATING FUNDS THEREFOR
FROM THE INSURANCE AND SELF-INSURANCE TRUST
FUND, INDEX CODE NO. 620103-661.
WHEREAS, Kostmayer Construction Company, Inc., through its
attorneys, filed a claim and lawsuit against the City of Miami,
in the United States District Court, Southern District of
Florida, Case No. 94-2463-CIV-FERGUSON, for alleged breach of
contract arising out of the burning of debris on Virginia Key in
the months directly following Hurricane Andrew; and
WHEREAS, the above claim and lawsuit have been investigated
by the Tort Committee of the City Attorney's Office and the
Department of Risk Management pursuant to Ordinance No. 8417,
which created the City of Miami's Insurance and Self -Insurance
CITY COMNLISSION
MEETIldG OF
MAY 2 ' 1996
Resolution 1V0.
96- 345
Trust Fund and said Offices recommend that said claim and
lawsuit, including counterclaim, be settled for the sum of
$636,710.93;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The Director of Finance is hereby authorized
to pay Kostmayer Construction Company, Inc., forthwith, without
admission of liability, the sum of $636,710.93 (payable in two
(2) installments: the first in the amount of $477,533.00 payable
within ten (10) days of the effective date of this Resolution,
and the second in the amount of $159,177.93 payable on January 2,
1997), in full and complete settlement of any and all claims and
demands against the City Of Miami, in the United States District
Court, Case No. 94-2463-Civ-Ferguson, upon the execution by
Kostmayer Construction Company, Inc., and its subcontractor,
Graves Wrecking and Salvage, Inc., of a general release, in a
form acceptable to the City Attorney, releasing the City of Miami
from any and all claims and demands, with funds therefor hereby
allocated from the Insurance and Self -Insurance Trust Fund, Index
Code No. 620103-661.
Section 2. This Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this 23rd day May 1996.
,STEPHEN P. CLERK, MA
A ES
WALTE J O , CITY CLERK
2 -
96-- 345
FINANCIAL AND BUDGETARY REVIEW:
MANOHAR S. SURANA
ASSISTANT CITY MANAGED,
1
RISK MANAGEMENT REVIEW: `
2L
FRANK K. ROLLASON, DEPUTY CHIEF
CHIEF OF RISK MA1�iAGEMENT
PREPARED
�AND APPROVED BY:
WA, EN BITTNER
.�S ISTANT CITY ATTORNEY
PPROVED AS TO FORM AND CORRECTNESS:
AqlON S, II
CITY ATTO Y
W670/WB/b s
i
i
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96- 345
„ CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: Honorable Mayor and Members PATE ; March 18, 1996 FILE: L-94-330
of the City Commission
SUBJECT: Resolution Authorizing Settlement with
Kostmayer Construction Company, Inc.
FROM: eA.guinn J�� S, III . n_ REFERENCES: City Commission Agenda
City Atton cy March 26, 1996
ENCLOSURES: l r2\
)
Attached is a proposed Resolution authorizing the Director of Finance to pay Kostmayer
Construction Company, Inc., without admission of liability, the sum of $636,710.93, payable
$477,533.00 this fiscal year, and $159,177.93 after January 2, 1997, in full and complete settlement
of any and all claims and demands against the City of Miami upon the execution of a Release of All
Claims, releasing the City of Miami from any and all claims and demands.
The complete evaluation of this claim is contained in the attached Tort Committee settlement
memorandum. In brief, the debris burning contractor claims that it brought extra equipment and
personriel to Virginia Key with the knowledge and consent of the City's on -site representative, which
was necessary because of the need to conduct a shaker operation to separate dirt and garbage from
the vegetative debris, before it could be burned. Without this extra operation, the contractor claims
the vegetative debris would produce more smoke than EPA regulators were willing to permit. It is
Rely that FEMA will reimburse the City for this Category A Expense, of which it was put on notice
early in the litigation.
This claim has been investigated by the Tort Committee and the Department of Risk
Management, and is hereby recommended by this Office.
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