2009-27231 ResoRESOLUTION NO.
2009-27231
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY
MANAGER AND CITY CLERK TO EXECUTE A SETTLEMENT AGREEMENT
AND RELEASE BETWEEN THE CITY AND ASHBRITT, INC., IN THE AMOUNT
OF $682,181.95, IN FULL AND FINAL SETTLEMENT OF ANY AND ALL
CLAIMS BY ASHBRITT RELATED TO THE DISASTER RECOVERY SERVICE
AGREEMENT BETWEEN THE CITY AND ASHBRITT, INC., DATED APRIL 6,
2004.
WHEREAS, during Hurricanes Katrina and Wilma, the City utilized AshBritt, Inc., for
Disaster Recovery Services, per an agreement dated April 6, 2004 (the Agreement); and
WHEREAS, the City withheld payments for $46,994.35, for charges relating to final
disposal fees for Hurricane Katrina, and $1,317,369.60, relating to emergency clearing operations
for Hurricane Wilma; and
WHEREAS, City staff and AshBritt representatives have had numerous meetings and
discussions since January 2006, relative to billings for emergency clear operations which were not
billed in accordance with the Agreement; and
WHEREAS, in an effort to settle all claims and disputes arising out of the claim for Disaster
Recovery Services performed by AshBritt, the City and Ashbritt have negotiated the attached
Settlement Agreement and Release, whereby the City agrees to pay Ashbritt the sum of
$682,181.95, representing full and final settlement between the parties of an outstanding and/or
disputed sums under the Agreement; and
WHEREAS, funding has been previously appropriated in the General Fund account number
011-7000-202001 by Resolution No. 2007-26474 in FY 2005/06; and
WHEREAS, in order for the City to further pursue any recovery of these costs, including a
claim for reimbursement to the Federal Emergency Management Agency, the City must make
payment to AshBritt.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission
hereby approve and authorize the City Manager and City Clerk to execute a Settlement Agreement
and Release between the City and Ashbritt, Inc., in the amount of $682,181.95, in full and final
settlement of any and all claims by Ashbritt related to the Disaster Recovery Service Agreement,
between the City and Ashbritt, dated April 6, 2004.
PASSED AND ADOPTED this 14th day of October , 2009.
ATTEST:
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CITY CLERK M OR FORM & LANGUAGE
Robert Parcher Matti Herrera Bower ~ F EXECUTION
T:\AGENDA\2009\October 14\ConsentWshBritt Settlement Agreement RESO.doc
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COMMISSION ITEM SUMMARY
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A.Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida, Approving And
Authorizing The City Manager And City Clerk To Execute A Settlement Agreement And Release Between
The City And Ashbritt, Inc., In The Amount Of $682,181.95, In Full And Final Settlement Of Any And All
Claims By Ashbritt Related To The Disaster Recovery Service Agreement Between The City And Ashbritt,
Inc., Dated April 6, 2004.
Key Intended Outcome Supported:
Ensure well-maintained infrastructure
Supporting Data (Surveys, Environmental Scan, etc.): According to the 2009 Community Satisfaction
Survey 92% of residents rated the City's emergency/ hurricane preparedness as "excellent" or "good."
Issue:
Shall the Ma or and Cit Commission a rove the Resolution?
Item 5
During Hurricanes Katrina and Wilma in 2005, the City utilized AshBritt, Inc., for Disaster Recovery Services
per an agreement dated April 6, 2004. The City withheld payments of $46,994.35 for charges relating to final
disposal fees for Hurricane Katrina and $1,317,369.60 relating to emergency clearing operations for
Hurricane Wilma. For Hurricane Katrina, the $46,994.35 represents charges not billed out in accordance to
the agreement. The emergency clearing operations charges for Hurricane Wilma were billed out as time and
materials for work performed in excess of the first 70 hours. All work in excess of 70 hours had to be billed
at a fixed rate.
City staff and AshBritt representatives have had numerous meetings and discussions since January 2006,
relative to billings for emergency clearing operations which were not billed in accordance with the agreement
between the City and AshBritt, dated April 6, 2004.
to an effort to settle all claims and disputes arising out of the claim for Disaster Recovery Services performed
by AshBritt, the City negotiated a Settlement Agreement and Release, agreeing to pay $682,181.95 of the
unpaid amount of $1,364,363.95 as a final settlement.
THE ADMINISTRATION RECOMMENDS ADOPTING THE RESOLUTION.
Adviso Board Recommendation:
N/A
Financial Information:
Source of Amount Account Approved
Funds: ~
$682,181.95 General Fund account number 011-
7000-202001 (previously
appropriated by Resolution No.
2007-26474 in FY 2005/06 .
2
3
4
OBPI Total $682,181.95
Financial Im act Summa : N/A
Cit Clerk's Office Le islative Trackin
Fred Beckmann, ext 6012
Sign-Offs:
De artment D`r r Assistant i ana er Ci er
FHB TH JM
r:WGENDA\2009\Octo6ef°r4CConsentlAshBritt Settlement Agreement SU~Wt.doc
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AGENDA M c7L.
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City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, voww.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City ~emmission
FROM: Jorge M. Gonzalez, City Manager
DATE: October 14, 2009
SUBJECT: A RESOLUTION OF THE MAYO AN CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AP ING AND AUTHORIZING THE CITY
MANAGER AND CITY CLERK TO EXECUTE A SETTLEMENT AGREEMENT
AND RELEASE BETWEEN THE CITY AND ASHBRITT, INC., IN THE AMOUNT
OF $682,181.95, IN FULL AND FINAL SETTLEMENT OF ANY AND ALL
CLAIMS BY ASHBRITT RELATED TO THE DISASTER RECOVERY SERVICE
AGREEMENT BETWEEN THE CITY AND ASHBRITT, INC., DATED APRIL 6,
2004.
ADMINISTRATIVE RECOMMENDATION
Adopt the Resolution.
FUNDING
$682,181.95 available in the General Fund account number 011-7000-202001 (previously
appropriated by Resolution No. 2007-26474 in FY 2005/06).
ANALYSIS
During Hurricanes Katrina and Wilma in 2005, the City utilized AshBritt, Inc., for Disaster Recovery
Services per an agreement dated April 6, 2004. The City withheld payments of $46,994.35 for
charges relating to final disposal fees for Hurricane Katrina and $1,317,369.60 relating to
emergency clearing operations for Hurricane Wilma. For Hurricane Katrina, the $46,994.35
represents charges not billed out in accordance to the agreement. The emergency clearing
operations charges for Hurricane W ilma were billed out as time and materials for work performed in
excess of the first 70 hours. All work in excess of 70 hours had to be billed at a fixed rate.
City staff and AshBritt representatives have had numerous meetings and discussions since January
2006, relative to billings for emergency clearing operations which were not billed in accordance with
the agreement between the City and AshBritt, dated April 6, 2004.
AshBritt's agreement with the City specifies that Work authorization costs connected to Exhibits "A"
and "D"shall be payable based on a standard of reasonableness, but in no circumstances shall City
be liable to AshBritt for costs that exceed reasonable costs as determined by The Federal
Emergency Management Agency (FEMA).
The Federal Emergency Management Agency (FEMA) had previously advised the City that it will not
reimburse the City for services that are not billed in accordance with contractual agreements.
Initially, FEMA excluded invoices billed as time and material for work exceeding 70 hours in our
Commission Memorandum- AshBritt
October 14, 2009
Page 2 of 2
project worksheet. Subsequent discussions with FEMA have raised the possibility that a partial
reimbursement may be considered by FEMA.
In an effort to settle all claims and disputes arising out of the claim for Disaster Recovery Services
performed by AshBritt, the City negotiated a Settlement Agreement and Release, agreeing to pay
$682,181.95 of the unpaid amount of $1,364,363.95 as a final settlement.
Funding has been appropriated within the Sanitation Enterprise Fund. FEMA is in the process of
closing out (final review) the City's project worksheets claims for debris removal. The City will
pursue any recovery of these costs at FEMA's final close-out. However, the City must make
payment to AshBritt prior to any claims for reimbursement to FEMA for these costs.
CONCLUSION
The Administration recommends that the Mayor and City Commission approve and authorize the
City Manager and City Clerk to execute a Settlement Agreement and Release between the City and
Ashbritt, Inc., in the amount of $682,181.95, in full and final settlement of any and all claims by
Ashbritt related to the Disaster Recovery Service Agreement, between the City and Ashbritt, dated
Apri16, 2004.
T:WGENDA\2009\October 14\ConsentWshBritt Settlement Agreement MEMO.doc