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Home My WebLink AboutR-90-0386J-90-393 OS/17/90 RESOLUTION NO. 9 0- 386 A RESOLUTION AUTHORIZING THE DIRECTOR OF FINANCE TO FAY TO F.N.M. CORPORATION, WITHOUT THE ADMISSION OF LIABILITY, THE SUM OF $650,000 IN FULL AND COMPLETE SETTLEMENT OF ANY AND ALL CLAIMS AND DEMANDS AGAINST THE CITY OF MIAMI, IN CIRCUIT COURT CASE NO. 89-3447-CA-26, UPON THE EXECUTION OF A RELEASE RELEASING THE CITY OF MIAMI FROM ANY AND ALL CLAIMS AND DEMANDS, SAID MONIES THEREFOR TO BE ALLOCATED FROM ACCOUNT NO. 671001-230102-652 ($400,000) AND ACCOUNT NO. 383002-269901-960 ($250,000). WHEREAS, P.N.M. Corporation, through its attorney, filed a lawsuit against the City of Miami, in the Circuit Court of Dade County, Florida, Case No. 89-3447-CA-26, for alleged delay damages, retainage and interest arising out of the construction of Phase II of the Bayfront Park Redevelopment Project No. B-3205-E; and WHEREAS, the above lawsuit has been investigated by the City Attorney's Office and the City Manager's Office, and said offices recommend ::hat this lawsuit be settled for the sum of $650,000; 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 P.N.M. Corporation, without the admission of liability, the sum of $650,000 in full and complete settlement of any and all claims and demands against the City of Miami, in Circuit Court Case No. 89-3447-CA-26, upon the execution of a release, releasing the City of Miami from all claims and demands, said monies therefor hereby allocated from Account No. 671001-230102-652 ($400,000) and Account No. 383002-269901-960 ($250,000). CITY COMMISSION MEETII`G OF ,,,,, MAY 24 1990 90- 386 RES0iUT10N tic. 11 Section 2. This Resolution shall becOTne effective immediately upon its adoption. PASSED AND ADOPTED this 24th ATT T• MAT Y HIRAI CITY CLERK PREPARAND APPROVED BY: G CHR R F. KURTZ ASSISTANT CITY ATTORNEY _ day of May 1990. XAVIER L. SUA-R MAY APPROVED AS TO FORM AND CORRECTNESS: 14J RGE . F D Z CITY ATTO CFK/nr/bss/M1491 -2- 90- 386 13 MAv— 1T--90 THU 1 T :02 LAW DEFT CITY OF MIAMI. FLORIDA INTER-OFPICE MEMORANDUM To • Honorable Mayor and Members of the City Commission • �clLilil ,,,V Jorge L. Ir nandes City Atto ney 27 -' OAT[, May 160 1990 ►itE L�69( suoutot Request for @ettlen►ent Adthor REFERENCe6 P.N.M• Corrporotion v. City of Miami v. Puller i Sadao, eNeLC404es . P.C. Case: Noe 89-3447-CA-26 P,N.M. Corporation was awarded the bid to ConRtrugt Phase 11 of the Aayfront Park Redevelopment Project. The original contract was for $6,871,000.00. Through chan9c orders and extra work the contract was increased by $790#512.00, for a total of S7,661r512.00. The project was scheduled to commence January 6, 1986 and be completed December 1, t986. Because of various delays and Changes in the scope of the work, the project was not substantially complete until April 15, 1988. P.W.M. Corporation claimed that due to the delays caused by numerous design changes on the project, lack of sufficient information, site unavailability, and ongoing changes throughout the project, they alleged damages in the amount of $2,096,877.17. As a result of P.N.M. filing a lawsuit against the City for theso alleged damages, the City tiled a third -party claim against Fuller and Sadao, P.C., the architectural firm for the project, for breach of contract. Additionally, the City filed a counterclaim against P.N.M. Corporation for liquidated damages alleging that F.N.M. failed to complete the project on time. P.N.M. filed it© lawsuit against the City in January, 1989, for not only delay damages in excess of $2 million, but for the retainage amount of $856,795.44. After the City performed an initial audit of the retainage, an amount of $788,474.60 was agreed upon and was paid to P.N.M. Corporation on June 28F 1989. P.N.M. would be entitled to interest (at the statutory rate of 12% par annum) from April 15, 1988, the completion date of the project, which would result in an interest assessment against the City of approximately $110#386.00. P.N.M. has accepted in full and complete settlement, without an admission of liability by the City, the amount of Light Hundred Thousand ($800,000.00) Dollars. The City'a contribution would be Six Hundred nifty Thousand ($650,000.00) Dollar$ subject to City Commission approval. The balance of One Hundred Fifty Thousand t$150,000.00) Dollars will be contributed by Fuller & Sadao. 90 - . 386 t� ;s P1AY-- 1 7-9@ T HU 17 : 02 LAW DEFT Honorable Mayor and Members May 16. 1990 of the City Commission — PNM Corp. V. City of Miami Page Two v. Fuller s Sadao Therefore, it is respectfully recommended by the City Attorney end the City Manager that the requested amount of Six =— Hundred Fifty Thousand ($650,000.00) Dollars be approved by the - City Commission for full settlement of the claims by P.N.M. Corporation pursuant to the terms as outlined in the attached Resolution. ELF/GPK/nr/P 34 1 Sn closure SO- 386