HomeMy WebLinkAboutMemo - Office of the City AttorneyCITY OF MIAMI
OFFICE OF THE CITY ATTORNEY
MEMORANDUM
TO: The Honorable Mayor and Members of the City Commission
FROM: Julie O. Bru, City Attorney
DATE: September 19, 2011
RE: Proposed Resolution -City Commission Meeting -October 13, 2011
Accepting a payment in the amount of $55,000, in full settlement of
all claims and demands against Navigators Management Company,
Inc., d/b/a Navigators Insurance Co., as surety for One Crow, Inc.,
for Project No. B-5650D is accepted
File No. 11-00858
The attached proposed Resolution seeks authorization to accept payment in the amount
of $55,000, in full settlement of all claims and demands against Navigators Management
Company, Inc., d/b/a Navigators Insurance Co., as surety for One Crow, Inc., for Project No.
B-5650D, and authorization for the City Manager to execute a release in a form acceptable to
the City attorney to effectuate the settlement.
This claim arises from a performance and payment bond issued to One Crow, Inc., for
the Overtown Stonnwater Pump Station Rehabilitation Project No. B5650D. In May 2004 the
City adopted a resolution accepting the bid of One Crow, Inc., in an amount not to exceed
$286,000 for upgrades to the Overtown Stonnwater Pump Station. Navigators Insurance Co.
issued the performance and payment bond in the amount of $286,000. In 2005, the City
Commission adopted a resolution increasing the contract price to $346,000. According to
legislative materials supporting the first increase in the contract's price, the project faced many
challenges; "...due to unforeseen circumstances that required revisions in the scope of work
and delayed the project: Obtaining equipment for the project was significantly delayed due to
impacts from Hurricane Katrina on the manufacturer. Additionally, the costs of materials and
labor have increased approximately 20% since the project began."
In 2006, the City Commission adopted a resolution increasing the contract price to
$532,031 due to additional work and costs necessary to complete the project. Finally, in 2007
the City Commission adopted a resolution increasing the contract price to $658,298. However,
the amount of the payment and performance bond was never increased. In May 2007, One
Crow, Inc., notified the City that it was unable to continue the project due to delays it attributed
to the City of Miami. In 2008, the City notified One Crow, Inc., of its default under the
contract. The City's consulting project manager certified that the project was 96% complete.
Subsequent to the default, One Crow, Inc.'s corporate status was administratively dissolved
and has not been reinstated.
Navigators Management has offered to pay the City $55,000 to settle all claims and
demands against the bond issued to One Crow, Inc., in exchange for the City executing a
release and waiving any and all claims against One Crow, Inc., Navigators Management Co.,
and any other contractors, subcontractors, or suppliers for this project.
cc: Johnny Martinez, P.E., City Manager
Elvi Gallastegui, Agenda Coordinator
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