HomeMy WebLinkAboutR-16-0053Vop City of Miami
' Legislation
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Resolution: R-16-0053
File Number: 15-01530
City Hall
3500 Pan American
Drive
Miami, FL 33133
www.miamigov.com
Final Action Date: 2/11/2016
A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S),
ACCEPTING A NET PAYMENT TO THE CITY OF MIAMI IN AN AMOUNT OF
$277,882.19 IN FULL SETTLEMENT OF AN INSURANCE CLAIM FOR
REMEDIATION OF ARSENIC AT MARLINS PARK, PURSUANT TO THE TERMS OF
THE SETTLEMENT AGREEMENT AND DISTRIBUTION AGREEMENT; FURTHER
AUTHORIZING THE CITY MANAGER TO EXECUTE THE SETTLEMENT
AGREEMENT AND DISTRIBUTION AGREEMENT, IN SUBSTANTIALLY THE
ATTACHED FORMS, AND ALL NECESSARY DOCUMENTS, IN A FORM
ACCEPTABLE TO THE CITY ATTORNEY, TO EFFECTUATE THE SETTLEMENT
AGREEMENT.
WHEREAS, the City of Miami ("City") entered into a Construction Administration Agreement and
Baseball Stadium Agreement ("Stadium Agreements") between Miami -Dade County ("County") , the
City, and Marlins Stadium Developer, LLC ("Marlins") in conjunction with the construction of the
Marlins Baseball Stadium; and
WHEREAS, in accordance with the Stadium Agreements, the Parties procured an insurance
policy with coverage limits of $8 million ("Policy") from Chartis Specialty Insurance Company; and
WHEREAS, arsenic was discovered in the groundwater and the soil at the Marlins Park site,
which required remediation at a cost of approximately $5.6 million; and
WHEREAS, the Marlins tendered an insurance claim on the Policy in October, 2009 and Chartis
denied the claim in part and reserved its rights on the remainder of the claim; and
WHEREAS, the City, the County, the Marlins, and American International Specialty Lines
Insurance Company ("AIG"), as successor to Chartis Specialty Insurance Company, mediated this
dispute on November 12, 2015; and
WHEREAS, at mediation, AIG agreed to pay a total of $2,910,142.13 in full and final settlement of
the insurance claim; and
WHEREAS, the Parties entered into a Settlement Agreement and Release subject to approval by
the City Commission, attached as Exhibit "A"; and
WHEREAS, in accordance with the Stadium Agreements, the Marlins paid 73.3% and the City
and the County each paid 13.35% of the cost of the construction of the stadium and remediation of
the groundwater; and
WHEREAS, the proceeds on the insurance claim should be divided in an equal portion to the
expenses occurred, with the City receiving 13.35% of the proceeds less deductible and attorneys'
fees and costs, as set forth in the Distribution Agreement attached as Exhibit "B"; and
City of Miand Page 1 of 2 File Id. 15-01530 (Version: 1) Printed On: 4/18/2018
File Number: 15-01530
EnactmentNnmber: R-16-0053
WHEREAS, in accordance with the Stadium Agreements, the City is required to pay the
$50,000.00 deductible on the Policy; and
WHEREAS, the net payment to the City pursuant to the Settlement Agreement and Release,
attached as Exhibit "A", and Distribution Agreement, attached as Exhibit "B", is $277,882.19; and
WHEREAS, the Office of the City Attorney has investigated this insurance claim and recommends
that said claim be settled for a net payment to the City of $277,882.19; and
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by
reference and incorporated as if fully set forth in this Section.
Section 2. Net payment to the City, in the amount of $277,882.19, in full settlement of the
insurance claim on the Policy for remediation of arsenic at the Marlins Park, pursuant to the terms of
the Settlement Agreement and Distribution Agreement, is accepted.
Section 3. The City Manager is authorized{1 } to execute the Settlement Agreement and the
Distribution Agreement, in substantially the attached forms, and all necessary documents, in a form
acceptable to the City Attorney, to effectuate the settlement.
Section 4. This Resolution shall become effective immediately upon its adoption and signature of
the Mayor.{2}
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 (10)
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. 15-01530 (Version: 1) Printed On: 4/18/2018