Loading...
RESOLUTION 91-20362 RESOLUTION NO. 91-20362 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A SETTLEMENT WITH GEORGE HYMAN CONSTRUCTION COMPANY ("HYMAN") , WHEREBY HYMAN RELEASES THE CITY FROM A $6.7 TO $8 MILLION DELAY DAMAGE CLAIM ON THE CONVENTION CENTER EXPANSION PROJECT AND ANY AND ALL OTHER CLAIMS PERTAINING TO THE CONVENTION CENTER EXPANSION CONTRACT, THE WEST WRAP AROUND CONTRACT AND THE TOPA CONTRACT, IN CONSIDERATION OF THE CITY PAYING HYMAN $990,000. WHEREAS, the City entered into the following contracts with George Hyman Construction Company: 1) Contract dated February 2 , 1987, between City, as Owner and Hyman, as Contractor, for the construction and expansion of the Miami Beach Convention Center under City of Miami Beach Bid N. 20-86/89 . 2) Contract dated December 21, 1988 between City, as Owner and Hyman, as Contractor, for the expansion of the Miami Beach Convention Center West Wrap Around Contract, City of Miami Beach Bid No. 141-87/89 . 3) Contract dated June 10, 1988 between City, as Owner and Hyman as Contractor, for the Jackie Gleason Theater of the Performing Arts Reconstruction, under City of Miami Beach Bid No. 12-87/89 "TOPA Reconstruction" . and WHEREAS, Hyman made a delay damage claim against the City with respect to item No. 1 above, the Convention Center Expansion Contract; and WHEREAS, a settlement has been negotiated with Hyman, whereby the City would pay Hyman the sum of $990, 000 and Hyman would release all of the three above construction projects and indemnify the City for any claims of contractors, subcontractors and sub- subcontractors of Hyman; and WHEREAS, funds for this Settlement are available from Bond Fund No. 5358 . NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the following settlement with George Hyman Construction Company is hereby approved: 1) The City would pay Hyman $990, 000. 2) Hyman would release the three construction contracts set forth above and indemnify the City against the claims of any subcontractors or sub-subcontractors. 3) This Settlement is subject to such documentation as the City Attorney may require. PASSED and ADOPTED this 11th day of September , 1991. ' Q7L--'.0oL-2 c:: MAYOR ATTEST: - *' (c:Lik„i4 F .- y-t\A------- FORM APPROVED CITY CLERK LEGL D PNB: lmBY C:resoluti\hyman.rel l 7November 7, 1991 Date 2 • eat, Vteapai ead \PMI BFq FLORIDA 3 3 1 3 9 Li 1.1 �ORATEDI* "V A CA TIONL A NU U. S. A. ' •„(ix, ..„„,1 OFFICE OF THE CITY MANAGER CITY HALL 1700 CONVENTION CENTER DRIVE TELEPHONE: 673-7010 COMMISSION MEMORANDUM NO;:: -U.X7/ DATE: September 11, 1991 TO: Mayor Alex Daoud and Members of the City Commission FROM: Carla Bernabei Talarico City Manager SUBJECT: CONVENTION CENTER EXPANSION PROJECT - DAMAGE CLAIMS SETTLEMENT AND CLOSURE OF THE PROJECT This Project, which began construction in early 1987 and is now complete, consisted of the renovation and of new construction of about 1 10 0� q 0 0 0 square feet. The Project ect was constructed under two separate contracts; the first broken into two parts called Phase I and Phase II. This distinction was necessary to keep two large exhibit halls and meeting rooms available at all times during construction. The second contract, called the West Wraparound, was delayed initially because of the lack of funds. Funding became • available in 1988 which allowed the second contract (West Wraparound) to be awarded and timed in the same time frame as Phase II. The total construction cost for both contracts was $75,946, 000 and an additional amount of $14,364,000 was spent for professional fees, funding expenses, furniture, fixtures, equipment and a several other items relating to a Project of this nature, bringing the total cost to date to approximately $90,310, 000. • In May of 1990, the George Hyman Construction Company (Hyman) submitted to the City a formal delay damage claim in the approximate amount of $6.7 million for the Phase I and Phase II contract, and the City has been informed that other claims may be pending which might bring the total over $8 million. This amount is the sum of all claims either by Hyman or subcontractors involved with the project. When this claim was received, both TCCEA and the City Commission directed the Administration and the City Attorney to review the allegations made in the claim and further authorized the hiring of High-Point Schaer to do an independent review. This process involved many meetings with all parties involved and spanned almost a year. The end result could be summarized by saying that the information presented by Hyman raised concern with the City but was not detailed enough to sustain a strong offensive by the Contractor. After several meetings with members of TCCEA, it was decided to furnish Hyman with a summarized version of the High-Point Schaer report. TCCEA further directed the Administration and the City Attorney representatives to meet with Hyman to see if some mutual settlement was possible. A final meeting was held between Eugene E. Lunger, Senior Vice- President and Regional Manager, George Hyman Construction Company, Vincent E. Grimm, Projects Coordinator and Patrick N. Brown, First Assistant City Attorney - Transactions, for the City of Miami Beach AGENDA A2 ACP', 5 ITEM 9-7/- DATE .Y. l i •t' '••' - II'•: ♦N',' .i"_..•F•'.'yr r,• ,r. 1]7.,1+r P,..i' •. . ... .t. . 't' t'•• .f-.r.•.-. .S.• a ".C' .A:.. ... -. .. ."V•_+ . •1':, r*•'t I•rY:Y .' yam.. l .,=: ?. S. .•�.,; .%^t:'....r .. � ^jam. .�. •I• '.Z°.• •..r IA'. I1 Y. t: tee. :i .t'• r 1 W 'l1 .F '.f•I 1 ft. Y / t - t••.�.. t :... ,- ..•--•.. ...- •-. •;.. .. ',: .. a'- :`-' 'e. .i. 'y'` , ;1. COMMISSION MEMORANDUM PAGE TWO SEPTEMBER 11, 1991 .w:`i ji in late July. The result of this meeting was an agreed upon sum of $990,00-0 to be submitted to the members of TCCEA and the City Commission for ratification. A formal meeting of TCCEA was held on September 3 , 1991, and a =resolution was -pas-sed to---forward the recommendation for settlement in the amount of $990,000 to the City Commission. If approved, this agreement would indemnify and hold harmless the City from any claims by Hyman or any of its subcontractors or sub-subcontractors for the contracts for Phase I, Phase II, West Wraparound and the contract for TOPA. ADMINISTRATION RECOMMENDATION It is the recommendation of the Administration, that the City Commission approve the proposed settlement settling the claims with the George Hyman Construction Company for an amount equal to $990, 000 and that this settlement would indemnify and hold the City harmless from any further claims by the George _Hyman. Construction Company for any work performed by them or any of their subcontractors or sub-subcontractors for all contracts with the City of Miami Beach for Phase I, Phase II of the Convention Center; West Wraparound contract for the Convention Center and the contract for TOPA. This settlement would be subject to the City Attorney' s approval of all documentation implementing the settlement. The funds for this settlement are available from Bond Fund No. 358. CBT:VEG: lcd i5 Ati 1 • • ;.j • `L• • • I, 1.♦ n t I R ir1 7 , y ' • •Y Y , • 6 • 1c'.N •a•,r. •s•!•..*.f X-. A' '4i.'.7S` 7'%x-♦•,.'R'-. .w - ..t.. ,,. a'\• a•-v..w '[ .1 — y ...v•.t .1"• Y`K • w R. 1t4.. ,°'' •.'} .Y 7. - -. .2''. - T t S(Ti' y'Y :t•'fi_+. C s t .i. ..t••v• 7 ' L I • 1'i h .'t• •. 1 .•Y Z • r• _ti• _ •i->, .. 'a• ."2. .- •n+'. .. SEP 06 '91 12:31 GEO HYMAN CONST. w • T GEOR.GE 14YMAN CoNsmucTIoN Co. .Ml. 3440 HOLLYWOOD BOULEVARD. SUITE 300 HOLLYWOOD,FLORIDA 33021 (305)981.4422 September -6,-1991 -1991 • • Patrick N. Brown First Assistant City Attorney Transactions OFFICE OF THE CITY ATTORNEY CITY OF MIAMI BEACH, FLORIDA. P. 0. Box 0 } Miami Beach, FL 33119-2032 SUBJECT: Convention Center Expansion Project --Damage Claims _ Settlement and Closure of Project Gentlemen: • - This is to advise that we are in concurrence with the September 11 , • 1991 draft commission memorandum on the above subject which was • forwarded to us by Mr. Vince Grimm (copy attached) . We agree to its terms and conditions and will accept the $990, 000. 00 settlement offer based upon its payment within 45 days of the commission' s approval . Very truly yours , =�^ THE =* : UY, .- ` •ONSTRUCTION CO. •1 AtAll#P) B. B. :- r •f Senior Vice President and Regional Manager EEL/le Enclosure cc: File .f .a rj Viss` T A member of The Clark Construction Group • rn 6 .:x `A r, AGENDA #00l • ITEM • .; DA TE -..r w. _ as,+ `+..a•.. ...K._�.. •_..,... �•' :?^E� .r. t .a�� ,r:. :v+•rw.r{,•,. ^!:::' _�^s7r?i�' .j4•!p°'!::-vY •a1\;X}•. _ep"\w'W`,.;T`•'Cr :n:. `r n�i.. �.: ...,t.. \•, ,x �- •y��.,yc..• .,y�, .:>r^-r' i.. '.s"... .K �„ •- _.�•,. ,(. •.! .;K'. !k'..3".. '1 �.S''C:. i'y. r'ry �.'f• :<\\'f7• ...�-"-y.�5v.. -�•. '1. � K �r. r.� � !. <L. %�Mr •��•�• -a•+.: .- -Y•?` Y.. ..��`,".=� i%� r. '7 •w.f L• '•C •a .=i Y,• �{ l� l v.:• 's. _ .t"! ....tC..P•�!'I.r.�'1...�':1]..i.�.�.. .....i.c .. ..n-r. •Y•�... •.4_.. t.. .. •..• .,..'.1_.. - T. .. ... RELEASE OF CONSTRUCTION PROJECTS KNOW ALL MEN BY THESE PRESENTS: That in consideration of nine hundred ninety thousand dollars ($990 , 000) and other good and valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, the undersigned, The George Hyman Construction Company ("Hyman") , and its successors and assigns , for and on behalf of Hyman and its contractors , employees , attorneys, y agents , and representatives , does hereby release , remise, acquit, satisfy and forever discharge the City of MiamiQ Beach (hereinafter referred to as the "City") , a Florida municipal corporation, of and • p P from any and all claims , controversies, disputes , defenses , crossclaims , counterclaims , causes of action, suits , debts , damages , accounts, reckonings , bonds , covenants, contracts , agreements , promises , costs , expenses , compensation, liens , judgments , executions , obligation, liabilities and demands whatsoever, in law or in equity, in contract or in tort, whether known or unknown, including negligence , and of and from any and all matters and things of any nature whatsoever which Hyman may have had at any time up to and including the date hereof or which Hyman may in the future have or claim against the Cityarising g out of or in connection with the following construction ' roects: p � 1 . Contract dated February 2, 1987 , between City, as Owner and Hyman, as Contractor, for the construction and expansion of the Miami Beach Convention Center under City of Miami Beach Bid No. 20-86/89, including, but not limited to , any written or unwritten claims for delay damages made by Hyman against the City. 2 . Contract dated December 21 , 1988 between City, as Owner, and Hyman, as Contractor, for the expansion of the Miami Beach Convention Center West Wrap Around Contract , City of Miami Beach Bid No. 141-87/89. 3. Contract dated June 10, 1988 between City, as Owner and Hyman as Contractor, for the Jackie Gleason Theater of the Performing Arts Reconstruction, under City of Miami Beach Bid No . 12-87/89 "TOPA Reconstruction". The foregoing contracts are collectively referred to as the "Construction Contracts". This Release Agreement operates as an absolute release and discharge of the City of and from all matters and things alleged in or pertaining to the Construction Contracts , of and from all right , title , interest , claim and demand in and to the Construction Contracts , and of and from all matters and things g provided in or pertaining to the Construction Contracts . This Release Agreement further operates as an absolute release and discharge of the City of and from any and all claims , controversies , disputes, defenses , counterclaims , crossclaims , causes of action, and demands , direct or indirect, of which Hyman is now aware or should, through the exercise of reasonable diligence , be aware and of which Hyman may become aware respecting the Construction Contracts . This Release Agreement has been made by Hyman and accepted by the Citysolelyand exclusivelybenefitp• for the of the City and no other legal person shall be benefitted hereby. Additionally and specifically, no legal person other than the City shall , under any circumstances , be deemed to be a beneficiary, including an incidental or third partybeneficiary, . of the provisions hereof or of the release and discharge evidenced hereby. Hyman hereby expressly acknowledges and agrees that the facts in respect to which this Release Agreement has been executed, delivered and accepted may hereafter prove to be other than or different from the facts in that connection now known or believed by Hyman to be true . Hyman further hereby accepts and P assumes the risk of the facts proving to be so different, and agrees that this Release Agreement and the release evidenced hereby shall in all respects be and remain effective after the effective date hereof and not subject to cancellation or rescission by any such difference in facts . The provisions of this Release Agreement , and the consideration paid, transferred or received in connection with the execution and delivery hereof, represent the amicable resolution, settlement and compromise of disputed claims , and nothing provided herein is intended to be, nor shall the same constitute or be construed to be an admission against interest or an admission of liability on the part of Hyman or the City. Y Hyman expressly waives notice by the City of acceptance of this Release Agreement and of the release evidenced hereby . Y Hyman expressly acknowledges having received advice of counsel regarding the legal effect of executing and delivering counterparts of this Release Agreement. Hyman hereby agrees to indemnify and defend the City from any damage claim or loss which may arise by virtue of anyclaim by any subcontractor, sub-subcontractor, supplier of labor and/or material , or any person or entity claiming by, through or under }--.yman, arising out of the Construction Contracts for payment for kirk or materials furnished through the date hereof. - 2- This Release Agreement is limited to the Construction Contracts and is not intended to release any claim that Hyman might have against the City arising out of other projects or contracts , if any. Notwithstanding the foregoing, in the event the City asserts a claim against Hyman arising out of Hyman having been the contractor under the Construction Contracts , nothing contained in this Release Agreement shall prevent or preclude Hyman from raising the defenses of design error, or negligence by the City or its Consultants ; and if some third party (other than a subcontractor, sub-subcontractor, supplier of labor and/or material or any person or entity claiming by, through or under Hyman) asserts a claim against Hyman arising out of Hyman having been the contractor under the Construction Contracts , Hyman shall have the right to assert a claim against the City for indemnification and/or contribution arising out of design error or negligence by the City or its Consultants . IN WITNESS WHEREOF, the undersigned has executed this Release Agreement in several counterparts , each of which shall be deemed to be an original hereof, as of this /'- `/; day of November, 1991 . Signed, sealed and delivered in the presence of: THE GEORGE HYMAN CONSTRUCTION COMPANY, a cor orMaryland a ' y p mon -JDyE. E. Lunger Senior Vice President EEL/le -3- 01'IGINAL RESOLITION NO. 91-20362 Approving a settlement with George Hyman Construction Company ("Hyman") , whereby Hyman releases the City form a $6. 7 to $8 million delay damage claim on the Convention Center Expansion Project and any and all other claims pretaining to the Convention Center Expansion Contract, the West Wrap Aroung Contract and the TOPA Contract, in consideration of the City paying Hyman $990,000.