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Legislation
Resolution
City Hall
3500 Pan American
Drive
Miami, FL'3133
www.miamigov.com
File Number: 13-00535 Final Action Date:
A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S),
AUTHORIZING THE CITY MANAGER TO EXECUTE A SETTLEMENT AND
RELEASE AGREEMENT, IN SUBSTANTIALLY THE ATTACHED FORM, WITH TRAN
CONSTRUCTION, INC. AND ARCH INSURANCE COMPANY, IN FULL
SETTLEMENT OF ALL CLAIMS AND DEMANDS ARISING OUT OF OR RELATED
TO THE MELREESE GOLF CLUBHOUSE PROJECT, B-30566; FURTHER
AUTHORIZING A PAYMENT TO ARCH INSURANCE COMPANY, IN AN AMOUNT
NOT TO EXCEED $200,000; ALLOCATING FUNDS FROM CAPITAL
IMPROVEMENT PROJECT, B-30566, FOR SAID PURPOSE.
WHEREAS, pursuant to Resolution No. 08-0463, adopted July 24, 2008, the City Commission
authorized a contract with Tran Construction ("Tran") dated September 17, 2008, for the construction
of the Melreese Golf Clubhouse Project, B-30566 ("Project"), in the amount of $3,662,148, for the
scope of work, plus a ten percent (10%) owner contingency amount of $366,214.80, for a total not to
exceed award value of $4,028,362.80; and
WHEREAS, in connection with the contract, Arch Insurance Company ("Arch"), as surety,
issued a performance bond on behalf of Tran, as principal, and in favor of the City of Miami, as
obligee; and
WHEREAS, issues arose with Tran's performance of the contract, the City made demand upon
Arch to arrange for completion under the performance bond, and Arch disputed the propriety of such
default of Tran; and
WHEREAS, on or about March 31, 2012, Tran ceased performance on the Project due to the
expiration of its commercial general liability insurance; and
WHEREAS, notwithstanding the foregoing, Tran's subcontractors have continued to work with
the City in resolving any open issues and finalizing the scope of Tran's bonded contract; and
WHEREAS, Arch and the City have agreed upon entry into a Settlement and Release
Agreement in lieu of Arch's arranging for any remaining remediation or completion efforts under the
contract, and in full and complete satisfaction of Arch's obligations under the performance bond; and
WHEREAS, the City Manager requests authorization to execute a Settlement and Release
Agreement with Tran and Arch, in full settlement of all claims and demands arising out of or related to
the Project and further requests authorization for a payment to Arch, in an amount not to exceed
$200,000; and
WHEREAS, funds are to be allocated from Capital Improvement Project No. B-30566, for said
purpose;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,
City of Miami Page 1 of 2 File Id: 13-00535 (Version: 1) Printed On: 5/7/2013
File Number: 13-00535
FLORIDA:
Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by
reference and incorporated as fully set forth in this Section.
Section 2. The City Manager is authorized {1 } to execute a Settlement and Release Agreement, in
substantially the attached form, with Tran and Arch, in full settlement of all claims and demands arising
out of or related to the Project.
Section 3. A payment to Arch, in an amount not to exceed $200,000, is authorized, with funds
allocated from Capital Improvement Project No. B-30566, for said purpose.
Section 4. This Resolution shall become effective immediately upon its adoption and signature of
the Mayor. {2}
APPROVED AS TO FORM AND CORRECTNESS:
JULIE 0. B
CITY ATTORNEY
Footnotes:
{1} The herein authorization is further subject to compliance with all requirements that may be
imposed by the City Attorney, including but not limited to those prescribed by applicable City Charter
and Code provisions.
{2} If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days
from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective
immediately upon override of the veto by the City Commission.
City of Miami Page 2 of 2 File Id: 13-00535 (Version: 1) Printed On: 5/7/2013