HomeMy WebLinkAboutR-84-0395J-84-328
4/2/84
rr/D-5
RESOLUTION NO. 84"" 395
A RESOLUTION AUTHORIZING THE CITY MANAGER
TO MAKE PAYMENT TO FRANK J. ROONEY, INC.
IN THE AMOUNT OF $1,Z50,000, AS FINAL
PAYMENT AND IN TOTAL FINAL SETTLEMENT FOR
THE CONSTRUCTION OF THE MIAMI CONVENT ION
CENTER USING AVAILABLE FUNDS THEREFOR
UPON RECEIPT OF APPROPRIATE SETTLEMENT
DOCUMENTS FROM SAID FIRM; FURTHER
AUTHORIZING THE CITY MANAGER ON BEHALF OF
THE CITY TO EXECUTE A SETTLEMENT
AGREEMENT WITH AND A RELEASE OF FRANK J.
ROONEY, INC., SUBJECT TO THE APPROVAL OF
THE CITY ATTORNEY.
WHEREAS, the City of Miami has occupied and has had the
use of the Miami Convention Center since September, 1982; and
WHEREAS, since that time the City and Frank J. Rooney,
Inc., the general contractor, have been attempting to
negotiate a final settlement of claims arising out of the
Center's construction; and
WHEREAS, after conducting an audit, reviewing contractor
and subcontractor claims, and all other pertinent data
relating to said construction, the City Manager recommends
that final payment in the amount of $1,250,000 be made to
Frank J. Rooney, Inc., in total and final settlement of all
claims;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE
CITY OF MIAMI, FLORIDA:
Section 1. The City Manager is hereby authorized to
(a) make payment to Frank J. Rooney, Inc. in the amount of
$1,250,000, as final payment and in total final settlement
for the construction of the Miami Convention Center using
available funds therefor upon receipt of the appropriate
settlement documents from Frank J. Rooney, Inc.; (b) execute
on behalf of the City a Settlement Agreement with and a
Release of Frank J. Rooney, Inc., subject to the approval of
the City Attorney.
CITY COMMISSION
MEETING Or
APR 5 1984
kEtwAf;hS �
rA6sco AND xnop/co t»i"5th day of 1984~_
ATTEST:
ulliu
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PncPxncD AND APPROVED BY:
'
DEPUTY CITY ATTORNEY
° Howard V. Gary
City Manager
FROM
A an oms
Project Director
dvil
CITY OF
INTER -OFFICE— iI'=M OrAP- DIJ-,i-1 Y ~
DATE- April 2, 1.984 c-��--e .7.r
SUBJECT- Resolution
payment on
Convention
REFERENCES
ENCLOSURES.
autho-r:i-Eing final
the Mlam:
Center''::
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A Resolution authorizing the City Manager
to make payment to Frank J. Rooney, Inc.
in the amount of $1,250,000 as final
payment and in total final settlement for
the construction of the Miami Convention
Center using available funds therefor,
upon receipt of appropriate settlement
documents from said firm.
The Miami Convention Center project (a.k.a. City of Miami/
University of Miami James L. Knight International Center)
general construction contract has been completed by Frank J.
Rooney, Inc. The work was substantially completed September 1982
in time for the City's commitment to the ASTA Convention.
However, some work remained unfinished and there were numerous
problems and claims between the City and the Contractor to be
resolved. Now, all remaining wort: including the punchlist and
warranty i.tc rns have been completed and all- outstanding claims
for changes and related extended general condition costs have
been resolved t.11rough negotiation. It is nog,; in oa-de—,,- for the
City Commission to accept the completed work and authori2:e the
City Manager to mal,,e final.. payment after all conditions of
settlement are met.
The history of the project is quite complex and the following
is a brief background of the settlement.
In October 1979, Frank J. Rooney, Inc. was awarded a Cost of
the Work plus a Fee contract with Guaranteed Maximum Cost in
the amount of $26,700,000 for the construction of the Miami
Convention Center project. The contract also provided for the
assignment of an existing $4,385,991 Structural Steel contract
with the Florida Steel Corporation in order to have all work
the responsibility of one general contractor.
��- 84--395.
Howard V. Gary
Page 2
April 2, 1984
After the award, there was nearly a year's delay resulting from
the sale of Convention Center and Parking Garage Revenue Bonds.
As construction got fully underway, the City Commission authorized
two increases in Rooney's contract of $1,301,359 and $5,548,698
respectively to cover inflationary cost increases, changes in the
plans and the assignment of the structural steel contract. At
that point the new guaranteed maximum cost was $33,550,057.
During the next 21 year's of construction, there were 579 change
orders which not only increased the costs but also extended the
construction period. Through a series of Commission actions,
funds were provided to cover the increases in the construction.
Subsequent increases in Rooney's contract brought the Guaranteed
Maximum Cost to $41,850,057. As of this date the City has made
payments totaling $41,135,870 with $714,187 balance being retained
pending settlement of all claims.
To close out the contract, Rooney initially submitted claims of
$1.2million for increases to the Construction Contract and they
presented other subcontractor delay claims in excess of $2 million
for which under the contract the City might be liable. These
claims were excessive and unacceptable to the City. The Contractor
offered to negotiate the claims on an individual basis but the
City Manager directed that all claims be settled at one time.
Through the efforts of the City's Project Director, Project
Consultant, City Attorney and Finance Director with the assistance
of Special Counsel and Special Auditor, all pertinent documentation
and data were reviecaed and ar audit conducted. Concurrently,
extensive negotiations were held with the Contractor's officials
and legal_ counsel. to resolve claims.
As a result of these negotiations, the Contractor has offered to
accept a final payment in the amount of $1,250,000 as total and
complete final settlement for all claims by Rooney and its
subcontractors on the project. This final payment includes the
$714,187 retained and the balance of $535,813 would increase the
final contract sum to $42,385,870. The City of Miami/University
of Miami James L. Knight International Center project has funds
to cover the increase in the contract sum and the final payment.
It is the joint recommendation of the Conference Center Department
and the above staff and consultants on the project that a
resolution be adopted authorizing the City Manager to make payment
in the amount of $1,250,000 as final settlement to Frank J. Rooney
for the construction of the Convention Center after receipt of
the appropriate settlement documents.
cc: Jose Garcia -Pedrosa, City Attorney -
John J. Copelan, Jr., Asst. City Attorney
- Carlos Garcia, Finance Director
Donald W. Cather, Director, Public Works
Vince Grinun, Consultant
Darr_ey Davis, Esq., Special Counsel
E.P. laconnis, CPA, Special Auditor