HomeMy WebLinkAboutMemoTO : Pedro G. Hernandez
City Manager
FROM:
J hn F. Timoney
Chief of Police
CITY OF MIAMI, FLORIDA
UN T R-OFFICE MEMORANDUM
DATE :
SUBJECT :
AUG 1 5 2007
FILE :
Headquarters - Insurance Claim
(Flood Damages)
REFERENCES : Authorization for Payment
ENCLOSURES: 2
As a result of the settlement agreement between the City of Miami and the Department of
Justice, entitled Americans with Disability Act Compliance, entered in September of 2005, the
police department agreed to correct all deficiencies by October 1, 2009. In August 2006, the
police depai tuient, through the Capital Improvement Department and the Job Order Contract
program, entered into a contract with Carivon Construction Inc to renovate the Central Station
"Headquarters" building bathrooms. The renovation project was to ensure compliance with
ADA. In accordance with the agreement with the U.S. Department of Justice, the renovation
project commenced in September of 2006.
The project began with the demolition and renovation of the bathrooms on the fifth (5th) floor
followed by the bathrooms on the fourth (4th) and third (3rd) floors. The renovations were
progressing as scheduled until December 21, 2006. While one of the Carivon Construction's
employees was tearing down the walls and removing the existing sinks from inside the men's
bathroom located on the third floor, he ruptured a two (2) inch water supply line without first
verifying that the water had been turned off. The ruptured line caused significant flooding to the
3rd, 2nd and 1st floors of the "Headquarters" building as the water poured from one floor to the
next through the ceiling and nearby stairwell. This resulted in the immediate loss of function of
all phone line communications, the computer network punch board, several desk top computers
and the security system for the 1st and 2nd floors. Numerous offices were flooded forcing
employees to vacate and be temporarily relocated, severely curtailing work productivity and
services.
Notifications were made to the Capital Improvement Department and Risk Management at the
time of the incident. The incident and damages were photographed. A total of 210 photos were
taken for evidentiary purposes. (See attached photos indicating the severity of the flood
damages.) In order for all telephone communications to be restored and for the station security
system to be operational again, we contacted our contractual maintenance vendors requesting
"emergency" responses to correct/repair/replace the damaged facility and equipment. It was also
necessary to involve a plumbing company to repair the damaged water line, the station's
janitorial services company for clean-up and drying of floor carpeting and our computer supplier
to replace the water damaged desktop computers. As a result of the carelessness displayed by
Carivon's employee, we incurred unforeseen and unnecessary expenses amounting to
$59,522.63.
Headquarters Insurance Claim
(Flood Damages)
Page 2 of 2
A claim was presented to the Travelers Insurance Company in January 2007 for the total amount
of expenses incurred by our department for the damages sustained. At the initial meeting
involving Officer Martin P. Garcia, Mr. Frank Gomez (Risk Management) and Travelers
Insurance Company adjuster Kevin Johnston, the discussion centered on the fact that the
department had incurred numerous expenses while attempting to undo the damage done by their
customer's lack of due care in order to ensure that the "Headquarters" building became
operational again.
The adjuster, Mr. Kevin Johnston, agreed to our request and advised us to submit the invoice for
the costs incurred directly to their company for payment. However, on June 15, 2007, the
Travelers Insurance Company refused to pay our vendors directly and since then has made a
counter-offer of $35,928.75 as a settlement. This offer was rejected by the department.
Negotiations continue between Risk Management and the Travelers Insurance Company.
Outstanding invoices to be paid:
• Ingersoll Rand/Security System $ 24,998.89
• DELL/ Desk top computers $ 2,180.88
• Vista Building Maintenances (Janitorial) $ 2,096.00
• PLASCO / Employee I.D. computer $ 11,454.71
• AVAYA/ Telephone communication $ 10,613.00
• Bay Plumbing Co. $ 379.15
• Total Construction & Maintenances/structural damages $ 7,800.00
Total $59,522.63
Since Travelers has indicated its unwillingness to pay our vendors directly, and it appears that
this claim may take several additional months to resolve, we are requesting your authorization
and approval to pay our contractual vendors for the emergency work that they have already
performed. We have set aside the amount needed from our general funds. Upon receipt of the
insurance claim proceeds, we will request that the reimbursement amount be reflected in our
budget.
Thank you in advance for your prompt attention into this matter. Should you need any additional
information plea;nct Assistant Chief Adam L. Burden, II at extension 305-603-6130.
Approved:
ALB:mpg
Disapproved:
Office -'
Chief of P^
Miami, Fin
AUG 2 4 2007
RECEIVED