HomeMy WebLinkAboutR-90-0590a
J-90-618
7/16/90
RESOLUTION NO. 9 Q- 590
A R986LOTION AUTHORIZING THE DIRECTOR OF
FINANCE TO PAY TO THE GLORGE HYMN
CONSTRUCTION COMPANY, WITHOUT THE ADMISSION
Off' LIARILITYr THE --SUM OF $388000.00 114 PULL
AND COMPLETE SETTLEMENT OF ANY AND ALL CLAIMS
AND DEMANDS AGAINST THE CITY OF MIAMI0 IN
CIRCUIT COURT CASE NO. 84-18744—CA-03, UPON
THE EXECUTION OF A RELEASE BY BOTH MIAMI
CENTER ASSOCIATES, INC., AND GEORGE HYMAN
CONSTRUCTION COMPANY RELEASING THE CITY OF
MIAMI FROM ALL CLAIMS AND DEMANDS; SAID
MONIES TO BE ALLOCATED FROM THE CONSTRUCTION
ACCOUNT OF THE CONVENTION CENTER AND PARKING
GARAGE REVENUE BOND FUNDS.
WHEREAS, the City of Miami and Dade County were sued in 1984
by Dade Savings and Loan Association in the Circuit Court of Dade
County, Florida, Case No. 84-18744, alleging Sunshine Law
violations by the Dade County Board of Rules and Appeals in
connection with the correctness of plans relating to fire
resistivity provisions of the South Florida Building Code for the
Miami Convention Center Parking Garage (the "garage"); in turn,
the City of Miami sued both Miami Center Associates, Inc. ("MCA")
and the George Hyman Construction Company ("Hyman") for alleged
building code deficiencies and costs of remedying said
deficiencies; then, MCA and Hyman countersued the City of Miami
for monies due and owing for construction work performed on the
garage; and
WHEREAS, the above lawsuit has been investigated by the City
Attorney's Office and the City Manager's Office, and said offices
recommend that this lawsuit be settled for the sum of $388,000.00
with the following conditions precedent:
a. Hyman will perform remedial punchlist work pending
since 1985 so as to satisfy the Building Official;
b. Hyman will apply for, and receive, a Final Certificate
of Occupancy for the garage; and
c. Hyman and/or MCA
will provide to the proper City
officials a complete set of "as -built"
"reproducible" plans for the garage; and
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d, Hyman and 11CA will each release the City of Milli frt
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t�l�, b1�[i�ns' �►nd dl�t�an+ds�
NOWt THURFOREt MB IT RESOLVED BY THE COMMISSION OF THE CM
OF Fl1M F'RIAt
'Beet ion 1.,- The recitals and findings set Forth in the
preamble to this Resolution are hereby adopted by reference
thereto and incorporated herein as if fully set forth in this
Section.
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Section 2. The Director of Finance is hereby authorized_
to peg George Haman Construction Company, without the admission
a
a;
of liability, the sum of $388,000.00 in full and complete
4.
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settlement of any and all claims and demands against the City of
Miami, in Circuit Court Case No. 84-18744 CA 03, upon the
execution of a release by both Miami Center Associates, Inc., and
the George Hyman Construction Company releasing the City of Miami
from all claims and demands subject to the aforesaid conditions
precedent, and enter into a settlement agreement in a form
acceptable to the City Attorney, with monies therefor hereby
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allocated from The Construction Account of the Convention Center
and Parking Garage Revenue Bond Funds.
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Section 3. This Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this 26th day of
July , 1990.
XAVIER L UAREZ, MAYOR
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= CITY CLERK
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CITY OF MIAMI, FLORIDA '
INTM OFFICE MEMORANDUM
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tO Honorable Mayor and Members °A ` July 16, 1990 ���
of the City Commission
SUBJECT : Dade Savings V. City . aF Ki#ui i
v. George Byaan construeti46tk i F
' Miami Center a►ssoeiatos i Ines
FROM : Jorge L. FernandeZ REFERENCES : Case go. 84-187t4 (.i)3)
City Attorney Recomended Settlement
ENCLOSURES : Resolution
The subject case involves litigation concerning building
code defects in the Miami Convention Center garage. (commonly
referred to as the "Centrust Garage"). In 1980, pursuant to City
Commission Resolution No. 80-21, a "turn -key" contract was
entered into with Miami Center Associates, Inc. ("MCA") to
construct a, -parking garage adjacent to the Miami Convention
Center MCA hired The George Hyman Construction Company
("Hyman") to build the garage. In February of 1981, the City
entered into "Change Order No. 1" wherein the City agreed to
issue joint payment checks to both MCA and Hyman. The City of
Miami, along with Dade County, was sued in 1984.by then - Dade`,
Savings and Loan Association alleging that the Dade County Board
of Rules- and Appeals, the authority which passes on -
interpretations of the South Florida Building Code, violated the
Sunshine Law by rendering a decision regarding alleged building
Cade violations in the garage. The Courts ruled that. the
decision by said Board was void. As a result of being sued by
Dade Savings, the City of Miami sued MCA and Hyman for building;
code defects and the costs of corrections. The City was in turn
countersued by both MCA and Hyman for monies due and owing for.,.
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construction work performed on the garage. The City has been :
withholding $271,125.00 in retainage due MCA and Hyman pencinq .
completion of remedial repair and/or punchlist work required by;
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various building inspectors.
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$271,125.00 has been due Hyman under the contract. RoNevsr, h
because of non --compliance with the South Florida Building Code',
the City has withheld this amount pending remedial wbr)k
involving, among other things, painting low overhead be yellow:`
and installing warning signs throughout the garage. $yman'
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agreed to accept $386,000.00 in settlement of this case and
turn will perform the remedial, measures to satisfy the bui,ldi gI.
official (since the above retainage has been earning i.ntexestn ri
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an interest -bearing bankaccount• additional monies need nod: be:
appropriated to settle this litigation). Both Hymawi un and MCA `ll _A
then execute releases in favor of the City and obtain a ftnol
certificate of occupancy. - r,
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Honorable Mayor and Members July 16, 1990
of the City Commission Page Two`
Both the City Manager's Office and this office recommend
that this case be settled as outlined above to avoid the
additional expense of litigation and a possible adverse verdict
against the City. Therefore, it is respectfully recommended by
the City Attorney and the City Manager that the requested amount
of Three Hundred Eighty -Eight Thousand Dollars ($388,000.00) be
approved by the City Commission for full settlement of the claims
by MCA -and Hyman pursuant to the terms as outlined in the
attached Resolution.
JLF/C FK/n r/M4 43