Resolution 78-15712 .. i
RESOLUTION NO. 78-15712
A RESOLUTION AUTHORIZING EXECUTION OF AGREEMENT
WITH THE TRAVELERS INDEMNITY COMPANY, AS SURETY,
TO CONTINUE CHARLES F. SMITH & SON, INC. ,
CONTRACT FOR CONSTRUCTION OF FACILITIES FOR
TRANSMITTING SEWAGE TO VIRGINIA KEY TREATMENT
PLANT, P-19, CONTRACT NO. 3 .
WHEREAS, on February 24, 1976, the City of Miami Beach
and Charles F. Smith & Son, Inc. , entered into a contract for the
construction of facilities for transmitting sewage to Virginia Key
Treatment Plant, P-19, Contract No. 3, hereinafter called Con-
struction Contract, and
WHEREAS, on February 24, 1976, Charles F. Smith & Son,
Inc. , hereinafter called Contractor, and Travelers Indemnity
Company, hereinafter called Surety, executed and delivered to the
City their joint and several labor and materialmen payment bond,
hereinafter called Payment Bond, in connection with said Construc-
' tion Contract, and
WHEREAS, the Surety was notified by the Contractor on
July 12, 1978, and was notified by the City' s Engineer on July 19 ,
1978, that the Contractor was no longer performing the work required
by the Construction Contract and was otherwise in default of certain
of its obligations under said Construction Contract, and
WHEREAS, both the City and the Contractor have advised
the Surety that certain subcontractors, laborers and materialmen
who performed work in connection with the said project by said
Contract have not been paid on account of said work, and some or '
all of said unpaid persons have made claim against the Surety
and/or the City, and
WHEREAS, the Contractor has advised the City and the
Surety of its inability to make payment to said unpaid subcontractors,
laborers and materialmen, and
WHEREAS, the City has called upon the Surety, pursuant to
its Payment Bond, to pay the aforesaid unpaid subcontractors,
laborers and materialmen in all instances in which payment is due,
and
WHEREAS, the Contractor, under the General Agreement of
Indemnity, has assigned said Construction Contract to the Surety,
without limitation, and
WHEREAS, the City and the Surety are mutually desirous of
paying the aforesaid unpaid subcontractors, laborers and materialmen •
if and in the 'event said payments are due, and
WHEREAS, an appropriate agreement, a copy of which is
attached hereto and made a part hereof, has been prepared by and
between THE TRAVELERS INDEMNITY COMPANY and THE CITY OF MIAMI
BEACH, under the obligation of the aforesaid Payment Bond, whereby
the Surety will make payment to the aforesaid unpaid subcontractors,
laborers and materialmen, among other things, and the City will pay
to Surety immediately upon execution of said Agreement One Hundred
Thousand Dollars ($100, 000. 00) representing a portion of the con-
tract balances formerly owing to Contractor, and
OFFICE OF THE CITY ATTORNEY -1700 CONVENTION CENTER DRIVE -MIAMI BEACH,FLORIDA 33139
WHEREAS, said agreement has been approved as to legal
form and sufficiency by the City Attorney; and the City Manager
recommends the entry into of same;
•
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Clerk
be and they are hereby authorized and directed to execute and
deliver said agreement for and on behalf of the City of Miami
Beach; and that the proper financial officers of the City be and
they are hereby authorized and directed to disburse the monies
called for in said agreement from appropriate funds of the City.
PASSED and ADOPTED this 6th day of September, 1978 .
,411
Cie jdieZ
'( Ice Mayor
Attest:
>71 --06-544?-4 ,1 )
City Clerk
2
OFFICE OF THE CITY ATTORNEY-1700 CONVENTION CENTER DRIVE-MIAMI BEACH,FLORIDA 33139
ORIGINAL
RESOLUTION NO. 78-15712
(Authorizing execution of agreement with
the Travelers Indemnity Company, as
surety, to continue Charles F. Smith &
Son, Inc. , contract for construction of
facilities for transmitting sewage to _:_ . " _. - _
Virginia Key Treatment Plant, P-19,
Contract No. 3.)
1111
F