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Resolution 81-16806 l RESOLUTION NO. 81-16806 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF MIAMI BEACH TO AUTHORIZE THE MAYOR AND CITY CLERK TO EXECUTE A MUTUAL RELEASE BETWEEN THE CITY OF MIAMI BEACH AND TRAVELERS INDEMNITY COMPANY AND FRYD CONSTRUCTION CORPORATION; AND TO PROVIDE FOR THE SETTLEMENT MONIES TO BE DE- POSITED INTO THE MUNICIPAL ADMINISTRATION BUILD- ING BOND FUND ACCOUNT WHEREFROM MONIES MAY BE EXPENDED TO PAY EXPERT FEES AND ATTORNEY FEES INCURRED IN THIS MATTER. WHEREAS , for the reasons more fully described by the attached Mutual Release and Commission Memorandum No. 9281 , the City Commission of the City of Miami Beach deems it in the best interests of the City and its citizens to settle the differences and controversies with the Travelers Indemnity Company and Fryd Construction Corporation over the construction of City Hall ; and WHEREAS, expert fees and attorney fees have been expended in examining the potential liability of the Travelers Indemnity Company and Fryd Construction Corporation; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Clerk are here- by authorized to execute the attached Mutual Release with Travelers Indemnity Company and Fryd Construction Corporation; and that the settlement monies be deposited into the Municipal Administration Building Bond Fund Account wherefrom monies may be expended to pay - 'i expert fees and attorney fees incurred in this matter. PASSED and ADOPTED this 15th day of October , 1981. M. •r+ ATTEST: City lerk MLB:j j APPROVED LEGAL DEPT. - • -(5-c44;2A acoAdt- 6y __7772 Date i0 -/- Y/ OFFICE OF THE CITY ATTORNEY c624 1,11 C".". • • ZfrireA F L O R I D A . y pur JOHN A. RITTER TELEPHONE :673-7470 CITY ATTORNEY v. COMMISSION MEMORANDUM NO. + 2' o� DATE: October 15, 1981 TO: Mayor Murray Meyerson and Members of the City Commission V FROM: John A. Ritter, City Attorney ii Harold T. Toal, City Manager SUBJECT: TRAVELERS INDEMNITY COMPANY - CITY OF MIAMI BEACH MUNICIPAL ADMINISTRATION BUILDING, PB-78 The attached Mutual Release is a proposed settlement of the contro- versies existing at the time City Hall was completed; relating to delay in completion of work, cost overruns, uncompleted work, and cost to repair or replace defective work. The amount of the proposed settlement with Travelers Indemnity Company and Fryd Construction Corporation is One Hundred and Thirty-One Thousand Four Hundred and Thirteen and 70/100 ($131,413. 70) Dollars, which is being paid by Travelers Indemnity Company as surety to the City of Miami Beach. This amount had been negotiated by the Administration prior to the water pipe bursting in City Hall in March, 1981, but was not presented to the City Commission until the water damage could be evaluated and a claim made therefor. The attached Mutual Release does not release or discharge the parties in connection with the possible liability concerning the water pipe which burst and caused considerable damage in City Hall on March 26 , 1981. Formal Notice of possible further liability under the bond was given to Travelers Indemnity Company on April 2 , 1981. The results of tie investigation of the burst pipe are in the attached letter. Damages were paid to the City and there only remains the question of - the deductible amount. It was recommended that the City accept the release in the form sub- mitted by Travelers Indemnity Company which releases Travelers as to the building delays and all defects of construction which are presently known or which could have been known upon reasonable investigation. The release leaves only the question of the bursting pipe open for later resolution. Since the only amount recoverable would be the deductible not paid by our insurance company for the water damage to City Hall, it is recommended that the City institute suit to recover this amount. ADMINISTRATION RECOMMENDATION: That the City Commission authorize the Mayor and City Clerk to exe- cute the attached Mutual Release between Travelers Indemnity Company and Fryd Construction Corporation and the City of Miami Beach; and further, authorize the City Attorney to institute a suite to recover the amount of the deductible. JAR/HTT/MLB:jj AGENDA ITEM �! O' �^ DATE @ t $ ƒ / / / t ) '/ o/ 4-1 2 \ o / / u §Cl)/ ca u w o Q o Q tI"49 o % o j © / 0 / \a0< c \ \ \ • % / ƒ 4-) © j 0 0 0 W w w w g cc m / ^ 9 / / / / t 0 o U) Q W \ § § J w m = 4 t / \ \ \ o / \ § j \ 0 t qw Cr) mow / § j ƒ \ � / H .lOca \/ \ N▪ / •/ \ / ® § t O• c E• >1 / W 4) \4 / 0 \ § 4 2 0 = u u / /0 / ) / /