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HomeMy WebLinkAboutR-84-0182J=84=48 RESOLUTION No, 84-ILS2 A RESOt[.1TION AUTHORMNG THE CITY MANAGER TO REDUCE THE 10% RETAINAGE ON THE AU8URN SANITARY SEWER IMPROVEMENT PROJECT TO 2,5% WHEREAS, there exists a contract dated October 20, 1981 between the City of Miami, Florida and Martin -Chaney Equipment Rentals, Itic., in the amount of $2,731,825,50 for the construction. of Auburn Sanitary Sewer Improvement; and WHEREAS, after bringing the project to a state where the City has been able to accept beneficial use of it, but with certain items of surface restoration work still to be completed, the contractor has gone into bankruptcy and dissolved his organization; and WHEREAS, the Director of the Department of Public Works has demanded all protection due the City from the surety, United States Fidelity and Guaranty Company; and WHEREAS, the surety has reached an agreement with the City to hire a contractor to complete the restoration work, providing the City of Miami will reduce all retainage over and above the estimated cost of the remaining work; and WHEREAS, the estimated cost of the remaining work is approximately $65,000; and WHEREAS, a 2.5% retainage on the project would be $66,304.04; and WHEREAS, the City Manager and the Director of the Department of Public Works recommend the reduction of the 10% retainage to 2.5%; Ci'1'Y C©MISSIOIY NUMIG, OF F E B 9 190 REMhRK&. _ Nowo THEREFORE, BE IT RE80tvgb By THE COMM188ION or THE CITY OF MIAMIj VtOgIbA: Section 1, That the City Manager 'is hereby authorized to reduce the 10% retaitiage to 2,5% tetaiffiage for the Auburn Sanitary Sewer Improvement before final acceptatiee and authorization of final payment by the City Commission, Passed and adopted this 9th day of February, 1984. Maurice A6 Ferte MAURICE A, FERRE, MAYOR ATTEST: I:z RAHPH G. ONGIE-, CITY CUWK- PREPARED AND APPROVED BY: DEPUTY CITY ATTORNEY APPROVED AS TO FORM AND CORRECTNESS: lEgIft. GARCIA-PEDROSA, CITY ATTORNEY U rVI led 'D Howard V , Gary City i4an.ager EItY dF MIAMI. F'L601b ► IN` tR-OFFICt tii119M ORANCIUMi DATE: January 18, 1984 FILE: B`5475 AUBURN SANITARY SEWER I14PROVEME`NT _AZ - Donald W. Cather REFERENCES Director of Public Works , NcLosuREa. (For Commission meeting of January 26, 19SA) _: a Department of Public Works recommends the ::ana;;er to .:educe c:ia 10". retainage ^on the Auburn Sanitary Sewer improvement project to �71^e City entered into a contract with Martin-Chanev Equipment ?entals, Inc,, on October 20, 1981 for the construction of :auburn Sanitary Sewer Improvement, The amount of the contract is $2,731,825.50. After completing all of the work shown on the plans and specifications except surface restorations, the contractor went into bankruptcy, and dissolved his organization. The Public Works Department made demand against the surety for all of the protection afforded to the City by the performance bond. The surety, through their counsel, admitted their re- sponsibility to see that the City incurred no financial loss on the project, but they first refused to engage a contractor to complete the work. Eventually an agreement was reached between the Public Works Department, the Law Department, and the counsel for the.surety whereby the surety would hire a contractor to complete the work at an estimated cost of $65,000, and the City officials would ask the Commission to reduce the 10% retainage on the project to 2.5% retainage, which will amount to $66,304.04. The Public Works Department recommends this arrangement as a settlement of the disagreement and a vehicle to get the project finally completed, and thus recommends passage of the resolution. DWC:LEL:vh r 11 city OF MIAM1. FLORIDA Sift', ORANCUM -= Aoward V. Gary narF_: January 1.8, 1984 B-5475 AUBURN SANIIARY SL.ZR 1HPR0V'EA7Mi- `RC%1 Donald W, Cather RFFER£Alr�£ re Director of Publih Ttl6rks y� jq y� (Pot Com-r" fission Aeetiag T::e Depar=ent :)- 7dcr':::-: recce^er.c _::e :Tanager . : _ aduc = _ 2 zaina re�cI? z :auburn Sanizar 7 Sewer T—Oro-,-e:ran The City entered into a contract -*-th `Martin -Chaney 7cu 'of Rentals, Inc., on October 20, 1931 for the construction Auburn Sanitary Sewer I-mprovement. The amount of the contract is $2,731,825.50. After completing all of the work shown on the plans and specifications except surface restorations, the contractor went into bankruptcy, and dissolved his organization. The Public Works Department made demand against the suraty +ar all of the protection afforded to the City by the performance bond. The surety, through their counsel, admitted their re- sponsibility to see that the City incurred no financial loss on the project, but they first refused to engage a contractor to complete the work. Eventually an agreement was reached between the Public Works Department, the Law Department, and the counsel for the surety whereby the surety would hire a contractor to complete the work at an estimated cost of $65,000, and the City officials would ask the Commission to reduce the 10% retainage on the project to 2.5% retainage, which will amount to $66,304.04. The Public Works Department recommends this arrangement as a . settlement of the disagreement and a vehicle to get the project finally completed, and thus recommends passage of the resolution. DWC:LEL:vh 8' ow 82, 1