HomeMy WebLinkAboutSummary FormDate: 5/3/13
AGENDA ITEM SUMMARY FORM
FILE ID: /6 ^ 00535-
Requesting Department: CIP
Law Department
Matter ID No.
13-316
Commission Meeting Date: 5/23/13 District(s) Impacted: 1
Type: ® Resolution n Ordinance ❑ Emergency Ordinance ❑ Discussion Item ❑ Other
Subject: Resolution authorizing the City Manager to enter into a Settlement and Release Agreement with Tran
Construction, Inc. and Arch Insurance Company for the Melreese Golf Clubhouse Project, B-30566.
Purpose of Item:
To authorize the City Manager to enter into a Settlement and Release Agreement 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. This Resolution further authorizes a payment to Arch Insurance Company, in an amount not to exceed
$200,000. Funds are to allocated from Capital Improvement Project, B-30566, for said purpose.
Background Information:
Pursuant to Resolution No. 08-0463, the City of Miami (City) entered into 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. 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, as obligee. 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. On or about March 31, 2012, Tran ceased performance on the
Project due to the expiration of its commercial general liability insurance. 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.
Arch and the City have agreed upon entry into a Settlement and Release Agreement in lieu of Arch's arranging for any
remaining remediation and/or completion efforts under the Contract, and in full and complete satisfaction of Arch's
obligations under the Performance Bond. 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; further
authorizing a payment to Arch, in an amount not to exceed $200,000. Funds are to be allocated from Capital Improvement
Project No. B-30566, for said purpose.
Budget Impact Analysis
NO Is this item related to revenue?
YES Is this item an expenditure? If so, please identify funding source below.
General Account No:
Special Revenue Account No:
CIP Project No: B-30566
NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact: $200,000
CIP N/A'
If using or receiving capital funds/A Grants N
Final Approvals
(SIGN AND DATE)
Budget .. P
i
Risk M gement
Purchasing N/A Dept. Director
Chief City Manager
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