HomeMy WebLinkAboutR-91-0115RESOLUTION NO. _ u J. 15
A RESOLUTION AUTHORIZING THE DIRECTOR OF
FINANCE TO PAY THE FLORIDA DEPARTMENT OF
INSURANCE, AS RECEIVER FOR SOUTHEASTERN
CASUALTY AND INDEMNITY INSURANCE COMPANY, THE
SUM OF $33,382.00 REPRESENTING THE BALANCE_
DUE FOR RENOVATION OF THE MIAMI BASEBALL
STADIUM PRESS BOX/ROOF PROJECT; SAID MONIES
THEREFOR BEING ALLOCATED FROM THE CITY OF
MIAMI'S SELF-INSURANCE AND INSURANCE TRUST
FUND.
WHEREAS, on January 27, 1987, a contract was awarded to
Dosada, Inc. for renovation work on the Miami Baseball Stadium
Press Box, Project *B-3233; and
WHEREAS, Dosada, Inc., towards the end of the project,
assigned all remaining construction proceeds to the surety,
Southeastern Casualty and Indemnity Insurance Company, and
subsequently filed for bankruptcy; and
WHEREAS, Southeastern Casualty and Indemnity Insurance }
Company was deemed insolvent by the Florida Department of
Insurance and placed into receivership and the Florida Department
of Insurance then took over and completed said project; and
WHEREAS, there remains due and owing the sum of $88,382.00
pursuant to the terms of the original contract and subsequent
change orders; however, the appropriations for said project did
not increase with said change orders; and
WHEREAS, the Florida Department of Insurance, as receiver
for Southeastern Casualty and Indemnity Insurance Co., has
demanded that it be paid the remaining proceeds for said project;
and
WHEREAS, the City Manager's Office recommends that the sum
of $55,382.00 be paid to the Florida Department of Insurance;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The Director of pinanoe is hereby authorized to
pay the Florida Department of Insuranoe, as receiver for
Southeastern Casualty and Indemnity Insurance Company, the sum of
$86;389.O0, upon the execution of appropriate releases releasing
the City of Miami from all further claims and demands, said
monies therefor hereby allocated from the City of Miami's Self -
Insurance and Insurance Trust Fund.
Section 2. This Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this _14th day of �F,bruary-,.�1991.
ATZSS
MATTY HIRAI
CITY CLERK
PREP H� AND A P P R V E D B
CHRISTOPHER F. KURTZ
ASSISTANT CITY ATTORNEY
APPROVED AS TO FORM AND
CO
,fRRECYKJS, h
C
L J FERNANDEZ
M2008
XAVIER L. SPANZ, MA
M ^•
CITY OF MIAMI, FLORIDA 9,
INTER -OFFICE MEMORANDUM CA
t0 Honorable Mayor .and Members bAtE
of the City Commission
SUBJECT
FROM ; 0 gege L . nan ez REFERENCES:
City .Attor ey
ENCLOSURES:
February 1, 1991 FILE j._91-134
Resolution Authorizing
Payment to the Florida
Department of Insurance for
Monies Due and Owing the
Florida Department of
Insurance
It is respectfully recommended that the City Commission
approve 'the attached Resolution authorizing payment to the
Florida Department of Insurance, as receiver for Southeastern
Casualty and Indemnity Insurance Company, .which represents sums
due and owing for the renovation of the Miami Baseball Stadium
Press Box.
On January 27, 1987, the City entered into a contract with
Dosada, Inc. for renovation of the Miami Baseball Stadium Press
Box, Project #B-3233. Dosada, Inc. eventually went bankrupt and
prior to filing for bankruptcy, assigned all remaining
construction proceeds to the surety, Southeastern Casualty and
Indemnity Insurance Company (hereinafter "Southeastern").
Southeastern was in the process, as the surety on the performance
bond, of finishing up the project when it was deemed insolvent by
the Florida Department of Insurance and placed into receivership.
The Florida Department of Insurance took over the project, paid
all remaining subcontractors, and then requested of the City the
remaining construction proceeds. During the course of the
project, several change orders were entered into which increased
the cost of the project. However, an increase in appropriations
for the project was never requested, leaving an amount due of
$55,382.00, with insufficient funds to pay said amount.
The Florida Department of Insurance is authorized by Florida
Statute 631.154 to demand sums due when an insurer becomes
insolvent and any entity holding said funds shall deliver said
funds to the receiver (here, the Florida Department of
Insurance). If the entity (City) fails to do so, and the
receiver is forced to file suit, the receiver may be awarded a
judgment against the City for not only the sums due, but
interest, costs, and attorney's fees.
Therefore, it is respectfully recommended that the City
Commission approve the attached Resolution authorizing payment to
the Florida Department of Insurance.
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