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Home My WebLink AboutR-90-0827J-90-875 10/26/90 RESOLUTION NO. 90- S2'7 A RESOLUTION AUTHORIZING THE DIRECTOR OF FINANCE TO PAY TO RUSSELL, INC., FORTHWITH, WITHOUT THE ADMISSION OF LIABILITY, THE SUM OF $90,000 IN FULL AND COMPLETE SETTLEMENT OF ANY AND ALL CLAIMS AND DEMANDS AGAINST THE CITY OF MIAMI, IN CIRCUIT COURT CASE NO. 87- 23717 CA 13, UPON THE EXECUTION OF A RELEASE RELEASING THE CITY OF MIAMI FROM ANY AND ALL CLAIMS AND DEMANDS, USING FUNDS THEREFOR ALLOCATED FROM CAPITAL IMPROVEMENT PROJECT (CIP) FUND NO. 341094 MONIES AND TO THE EXTENT NECESSARY FROM THE PUBLIC WORKS DEPARTMENT OPERATING BUDGET WHICH BUDGETED FUNDS SHALL BE RESTORED AS SOON AS PRACTICABLE AND FURTHER AUTHORIZING A FINAL PAYMENT OF $117,952.70 FROM PREVIOUSLY APPROPRIATED CIP MONIES TO RUSSELL, INC. REPRESENTING RETAINAGE AND FINAL DRAW, UPON COMPLETION OF REMAINING PUNCH -LIST ITEMS TO THE SATISFACTION OF THE PUBLIC WORKS DEPARTMENT. WHEREAS, Russell, Inc., through its attorney, filed a lawsuit against the City of Miami, in the Circuit Court of Dade County, Florida, Case No. 87-23717 CA 13, for alleged delay damages, retainage and interest arising out of the construction of the S.W. 16th Street Highway Improvement Project, No. B-4488; and WHEREAS, the above lawsuit has been investigated by the City Attorney's Office, the City Manager's Office, and the Department of Public Works, and said offices recommend that this lawsuit be settled for the sum of $90,000; 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 Russell, Inc., forthwith, without the admission of liability, the sum of $90,000 in full and complete settlement of any and all claims and demands against the City of Miami, in Circuit Court Case No. 87-23717 CA-13, upon the execution of a release, releasing the City of Miami from all claims and demands, with funds therefor hereby allocated from Capital Improvement Project CITY CCsr,�%MSION MEETING OF 0C 1 �5 1990 90- 82'7 � JJUWJ6N No. r 40% (C.I.P.) Fund No. 341094 monies and to the extent necessary from the Public Works Department operating budget which budgeted funds shall be restored as soon as practicable. Section 2. The Director of Finance is hereby authorized to pay to Russell, Inc. the sum of $117,952.70, representing retainage and final draw, from monies already appropriated pursuant to C.S.P. Fund No. 341094, upon completion of punch -list items to the satisfaction of the Department of Public Works. Section 3. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 25th clay of,,-- 1990. 144 XAVIER L. SUVZ, MAYbR AT S M Y HIRAI CITY CLERK PREPTAvEAD, AND APPROVED BY: CHRISTOPHER F. KURTZ ASSTRTANT CITY ATTORNEY 90- 827 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM To: Honorable Mayor and Members of the City Commission FR4cty L . ernandez Atto ney DATE : October 17, 1990 FILLK-87-103 SUBJECT : Request for Settlement Authority REFERENCES Russell, Inc. v . City of Miami v. USF&G ENCLOSURES :Case #87-23717 (13 ) On. -August 13, 1984, Russell, Inc. was awarded Bids A, B. and C of the S.W. 16th Street Highway Improvement Project, #B-4488.. The project involved the construction of approximately two (2) miles of S.W. 16th Street between S.W. 17th Avenue and S.W. 37th Avenue and included clearing, grading, construction of asphalt pavement, concrete curbs and/or gutters, sidewalks, storm sewer facilities, and landscaping. The engineer's estimate for the work was $1,270,000.00 and Russell, Inc. was awarded the project as low bidder for $1,236,266.16. The contract time was to be 200 days and the notice to proceed was issued to Russell, Inc. on October 1, 1984. Because of various claimed delays, interference, and changes in the work, Russell, Incr.• did not substantially complete the project until September 5, 1985 (this date was alleged by Russell, Inc. and disputed by the Public Works Department). Russell, Inc. filed suit and alleged that the City breached the contract between Russell, Inc. and the City because of utility conflicts, water main construction, issuance of numerous revised construction plans, limiting of access to the work site, active interference by City personnel, and wrongful imposition of unreasonable administrative and inspection requirements. Asa result of the alleged breach, Russell, Inc. claimed that it was substantially delayed in completing the project and suffered damages in idled equipment and personnel, lost productivity, increased administrative and overhead costs, and costs due to acceleration of construction. The City counterclaimed against Russell, Inc. for liquidated damages alleging Russell, Inc. failed to complete the project within the specified contract time. The City filed a third -party complaint against USFUG, the surety, for failure to act upon the performance bond. Additionally, the City withheld retainage and the final draw on the project because Russell, Inc. failed to complete various "punch -list" items on the project. After extensive negotiations between the City, Russell, Inc., and USF&GG, Russell, Inc. is completing these items to the satisfaction of the Public Works 90-- 827 2 -/ Honorable Mayor and October 17, 1990 Members of the City Commission Page 2 Department and the retainage and final draw will be released upon completion. Russell, Inc. is claiming $203,850.03 in damages plus pre- judgment interest. Additionally, Russell, Inc. is seeking the retainage amount plus claiming interest due from 1985 (at the statutory rate of 12% per year). Russell, Inc. has agreed to accept, in full and complete settlement and without an admission of liability b the City, the amount- of Ninety Thousand Dollars ($90,000.003. The City Manager's Office, Public Works Department, and the City Attorney's Office agree that it would be in the best interest of the City to settle for this amount. Therefore, it is respectfully recommended by myself, the City Manager, and the Director of Public Works that the requested amount of Ninety Thousand Dollars ($90,000.00) be approved by the City Commission for full settlement of the claims by Russell, Inc., as well as paying $117,952.70, representing retainage and final draw, upon completion of the remaining punch list items, pursuant to the terms as outlined in the attached Resbl:ution. JLF:CFK:bf:M509 attachment 90-- 827