Item Coversheet

Resolutions - R7  I




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Alina T. Hudak, City Manager and Rafael A. Paz, Acting City Attorney 
DATE:September  30, 2021
 



SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE SETTLEMENT AGREEMENT BETWEEN CLARK CONSTRUCTION GROUP, LLC ("CLARK"), HILL INTERNATIONAL INC. ("HILL"), AND THE CITY OF MIAMI BEACH, FLORIDA ("SETTLEMENT AGREEMENT"), AS ATTACHED TO THE COMMISSION MEMORANDUM ACCOMPANYING THIS RESOLUTION, TO SETTLE THE LITIGATION STYLED AS CLARK CONSTRUCTION GROUP, LLC, VS. THE CITY OF MIAMI BEACH AND HILL INTERNATIONAL INC., ELEVENTH JUDICIAL CIRCUIT, CASE NO. 2020-002129 CA 01, IN CONNECTION WITH THE MIAMI BEACH CONVENTION CENTER RENOVATION AND EXPANSION PROJECT ("PROJECT"), AND AUTHORIZING THE CITY TO (1) RELEASE $6,400,000 IN RETAINAGE WITHHELD, IN PAYMENT FOR WORK PERFORMED ON THE PROJECT; (2) APPROVE PAYMENT OF $9,090,000 WITHHELD AS LIQUIDATED DAMAGES FROM CLARK ON THE PROJECT PAY APPLICATIONS TO ACCOUNT FOR PROJECT-RELATED SCHEDULE DELAYS, IN PAYMENT FOR WORK PERFORMED ON THE PROJECT; AND (3) APPROVE PAYMENT OF AN ADDITIONAL TOTAL AMOUNT OF $18,010,000, IN FULL SATISFACTION OF ALL PROJECT-RELATED CLAIMS ASSERTED BY CLARK AGAINST THE CITY, INCLUDING, WITHOUT LIMITATION, EXTRA WORK AND CHANGE ORDERS, CLARK'S CLAIM FOR GENERAL CONDITIONS, AND SUBCONTRACTOR IMPACT CLAIMS; WITH THE TOTAL SETTLEMENT AMOUNTS TO BE PAID BY THE CITY IN THE FOLLOWING INSTALLMENT PAYMENTS TO CLARK: $9,000,000 ON OR BEFORE OCTOBER 15, 2021; $9,900,000 ON OR BEFORE DECEMBER 31, 2021; $6,500,000 ON OR BEFORE THE OUTSIDE DATE OF MAY 15, 2022; $6,500,000 ON OR BEFORE DECEMBER 31, 2022; AND $1,600,000 IN PERFORMANCE BASED PAYMENTS TIED TO THE COMPLETION OF THE REMAINING WORK MILESTONES AS SET FORTH IN THE SETTLEMENT AGREEMENT; AND FURTHER, AUTHORIZING THE CITY MANAGER AND ACTING CITY ATTORNEY TO TAKE THE NECESSARY AND APPROPRIATE STEPS FOR THE IMPLEMENTATION OF THE SETTLEMENT AGREEMENT, AND AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE THOSE DOCUMENTS AND/OR AGREEMENTS NECESSARY TO EFFECTUATE THE SETTLEMENT AGREEMENT CONSISTENT WITH THIS RESOLUTION.

SUPPORTING SURVEY DATA

N/A
Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Does this item utilize G.O. Bond Funds?
Yes No 
Legislative Tracking
Office of the City Attorney/Office of the City Manager

ATTACHMENTS:
Description
Memorandum
Resolution
Exhibit A - Settlement Agreement