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HomeMy WebLinkAboutR-86-0388J-86-409 5/22/86 RESOLUTION NO. A RESOLUTION AUTHORIZING THE RELEASE OF $76,500 TO AAIEM CONSTRUCTION CORPORATION AND THE SURETY, THE FIDELITY AND DEPOSIT COMPANY OF MARYLAND, IN ACCORDANCE WITH AN AGREEMENT REACHED BY NEGOTIATIONS TO SETTLE DISPUTES BETWEEN AAIEM CONSTRUCTION CORPORATION AND THE CITY OF MIAMI RELATED TO MODIFICATIONS TO FORMER FIRE STATION NO. 16 - STRESS SIMULATOR AND MOORE PARK - REDEVELOPMENT, SAID AGREEMENT BEING THAT THE PAYMENT WILL BE USED BY THE SURETY TO RESOLVE CLAIMS OF SUBCONTRACTORS, AND TO BE PROVIDED FROM FUNDS PAYABLE TO AAIEM CONSTRUCTION ON THE TWO PROJECTS IN THE PROPORTION OF $13,625.61 FROM THE MODIFICATIONS TO FORMER FIRE STATION NO. 16 - STRESS SIMULATOR PROJECT AND $62,874.39 FROM THE MOORE PARK - REDEVELOPMENT PROJECT; FURTHER RATIFYING TERMS OF THE AFORESAID AGREEMENT THAT ALL OTHER MONEY PAYABLE TO AAIEM CONSTRUCTION CORPORATION ON BOTH PROJECTS, $15,900 ON THE FIRE STATION PROJECT AND $57,826.05 ON THE MOORE PARK PROJECT, AND ANY PORTION OF THE AFORESAID $76,500 NOT REQUIRED TO SETTLE CLAIMS OF SUBCONTRACTORS, SHALL BE RETAINED BY THE CITY AS ADDITIONAL LIQUIDATED DAMAGES AND REIMBURSEMENT TO THE CITY FOR INCOMPLETE WORK AT THE TIME OF FINAL ACCEPTANCE OF THE WORK. WHEREAS, there exist contracts dated December 4, 1983 and April 27, 1984 between the City of Miami and Aaiem Construction Corporation for the construction of Modifications to Former Fire Station No. 16 - Stress Simulator and Moore Park - Redevelopment, respectfully; and WHEREAS, the work has been satisfactorily completed on the Fire Station project and satisfactorily completed except as stated below on the Moore Park project; and WHEREAS, the Departments of Law and Public Works have engaged in extensive negotiations with Aaiem Construction Corporation and the Surety regarding Aaiem's claims for extra compensation for additional work and delays on both projects and the City's rights to assess liquidated damages for failure of Aaiem to complete the work, on both projects, on time; and WHEREAS, agreement has been reached on all of Aaiem's claims for additional payment for additional work, delay incurred by Aaiem, and the assessment of liquidated damages against Aaiem; and NEV17NG OF MAY - ?2 19W _, WHEREAS, the agreement reached regarding liquidated damages is as follows: 1) The City of Miami will release an amount not greater than $76,500 to Aaiem Construction Corporation and the — Surety which will be used by the Surety to settle any and all claims against both projects. Settlement of these claims is expected to require extensive negotiation and/or litigation which will be handled by the Surety but monitored by the Law Department. 2) All other money that may otherwise be payable to Aaiem or the Surety on the two projects will be retained by the City as liquidated damages or as reimbursement to the City for incomplete work, the incomplete work being the irrigation system in Moore Park which was constructed by Aaiem but is currently not operable because of the theft of some of its components while it was still the responsibility of Aaiem. 3) Any portion of the $76,500 to be released to Aaiem and the Surety which is not — required to settle the claims against the projects will be retained by the City and assessed as additional liquidated damages. The actual liquidated damages to be assessed will be stipulated in a future Resolution that will finally accept the completed work after all claims against the project have been settled; and WHEREAS, the Department of Public Works has determined that the proportions of the $76,500 to be released should be as follows: $13,625.61 from payments due on the Modifications to Former Fire Station No. 16 - Stress Simulator project and $62,899.39 from payment due on the Moore Park - Redevelopment project; and WHEREAS, the Department of Public Works will also recommend in a future resolution accepting the completed work on both projects that liquidated damages in the amount of $15,900 be assessed against Aaiem on the Modifications to Former Fire Station No. 16 project and in the amount of $57,826.05 plus any portion of the aforementioned $76,500 remaining after all claims against the project have been settled be assessed against Aaiem on the Moore Park - Redevelopment project; and -2- WHEREAS, the City Manager, the City Attorney and the Directors of Public Works and Parks and Recreation recommend the release of the aforementioned $76,500 in accordance with the agreement reached by negotiation and further concur with the recommendations regarding the assessment of liquidated damages; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager is hereby authorized to release to Aaiem Construction Corporation and Fidelity and Deposit Company of Maryland an amount not to exceed $76,500 of funds due Aaiem Construction Corporation for completed work on the Modifications to Former Fire Station No. 16 - Stress Simulator and the Moore Park - Redevelopment Projects, said $76,500 being proportioned as follows: $13,625.61 from the Fire Station Project and $62,874.39 from the Moore Park Project. Section 2. The agreement reached by negotiation by the Departments of Law and Public Works with Aaiem Construction Corporation and Fidelity and Deposit Company of Maryland whereby all other funds otherwise payable to Aaiem Construction Corporation and/or Fidelity and Deposit Company of Maryland in connection with the aforementioned projects, and any portion of the aforementioned $76,500 released by Section 1 not required to settle all claims against the project, will be retained by the City as liquidated damages or as reimbursement to the City for incomplete work is hereby approved with the actual assessment of the liquidated damages to be made by a future resolution that will be adopted to accept the completed work when all claims are resolved to the satisfaction of the City. PASSED AND ADOPTED this 22nd day of MAY , 1986. GX ATT ' / �XAVIER L. SUAREZ, Mayor City Clerk i-3-"'ii. PREPARED -,ND APJED BY: ACbrE, AN RO VILARELLO Assistant City At APPROVED AS LUCIA A. VQUU City Attorney AV/wpc/ab/M009 RM AND CORRECTNESS: Irlim t t CITY OF MIAMI. FLORIDA INTER -OFFICE P49 MORANOUM TO` Honorab a ayor and Members'..; of the Ci y Commission ;.�:'�.'_. FROM! L ci A. Do gherty i ty Attorney 6rt: May 2, 1986 FILE: B-2872 B-32U6 $U'SJEC* Modifications to Former Fire Station No. 16 - STRESS SIMULATOR and REFERENCES: MOORE PARK REDEVELOPMENT ENCLOSURES: The Department' of Public Works, the Law Department and the City Manager recommend a resolution authorizing the of $76,500 to Aaiem Construction Corporation and the Surety, Fidelity and Deposit Company of Maryland, in accordance with an agreement reached by negotiations to settle disputes between Aaiem Construction Corporation and The City of Miami related to Modifications to Former Fire Station No. 16 - Stress Simulator and Moore Park - Redevelopment, said agreement being that the payment will be used by the Surety to resolable ve claims mAaiem subcontractors, and to be provided from funds pay Construction on the two projects in the proportion Of $13►625.61 from the Modifications to Former Fire Station No. 16 - Stress Simulator project and $62,874 from the Moore Park - Redevelopment project; further ratifying terms of the aforesaid agreement that all other money payable. to Aaiem Construction Corporation on both projects, $15,900 on the Fire Station project and $57,826.05 on the Moore Park project, and.any portion of the aforesaid $76,5U0 not required to settle claims of subcontractors, shall be retained by the City it s .forditional incompleteworked at the es aof nd reimbursement to they final acceptance of the work. Aaiem Construction Corporation has contracts for the construction of Modifications to Former Fire Station No. 16 - Stress Simulator and Moore Park Redevelopment dated December isfactori4, The 1983 and April 27, 1984, respectively. y have and have ly completed work on the fire station project, satisfactorily completed most of the work on the Moore. Park project. The only significant item of unfinished work on the project is the completion of an irrigation system, which.is not currently working because parts were either stolen and/or vandalized. Aaiem Construction Corporation has ceased to do business. For the last year the Departments of Law and Public Works have been in extensive negotiations with Aaiem Construction Corporation and the Surety regarding Aaiem's claims for extra compensation for additional work and delays on both projects, and the City's rights to assess liquidated damages for the failure of MEN s::a:.".'iaseaSSlta.',t»i-Y'af' t 5 May 2, 1986 Honorable Mayor and Members page 2 of the City Commission Aaiem to complete the work on both projects on time. We have now reached an agreement with Aaiem concerning all their claims for additional payment, any delays they may have had, and the assessment of liquidated damages. The agreement regarding liquidated damages is as follows: The City will release an amount not greater than $76,500 to Aaiem Construction Corporation and the Surety, which will be used by the Surety to settle any and all claims against both projects. Most of these claims are from subcontractors and/or suppliers why have not received all of the payments due them. There he etis acn eat at deal of disagreement concerning the amount pay them, and it is expected that settlement of the claims will require extensive negotiation, and possibly litigation, whicn will be handled by the Surety, but monitored by the Law Department. Under no circumstances will -the City pay any more than $76,500 total on both of these projects. All other monies tnat may have otherwise been payable to Aaiem or the Surety on the two _ projects will be retained by the City as liquidated damages, or as reimbursement to the- City for incomplete work► such as Retention the incomplete irrigation system referred to above. _ these monies will mean.. that at some later date when final is made, we will be assessing acceptance of the project nt of $15,900 for the fire station liquidated damages in the amou_ k project we will be retaining as project, and on the Moore Par liquidated damages or reimbursement for incomplete work an amount not less than $57,826.05. The amount is not fixed at this time .because any portion of the $76,500 not required to settle claims against the also projects be retained by t theeased to City and Aaiem a nd the Surety will added to the $57,826.05. In spite of all the difficulty we had with both projects, both were completed within the contract amount, (on the fire station project this includes one increase of contract of $15,000 necessitated for the removal of asbestos found in the building after work began). Neither project, however, was completed on time. On the fire station project some of the delays in completion on time can be attributed to a late start by the contractor because of difficulty in getting his contract documents executed. The Moore Park Project was partially funded by a $700,000 Federal Grant that dictated that the work must be not complete Otheober 1, pro'ect lon5thatand date,even hethough did managentoabringdid it not complete ] _ May 2, 1986 Honorable Mayor and Members Page 3 of the City Commission to a state of essential completion so that the City did not lose the grant. The Public Works Department is preparing a report on both projects in which they will give more details concerning all aspects of the projects. hould yu be ill be made available too you upon interested din the reports, they w LAD/AV/wpc/ab/P006 cc: Cesar H. Odio, City Manager Matty Hirai, City Clerk