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Agenda 01/22/2013 Item #16K2 1/22/2013 Item 16.K.2. EXECUTIVE SUMMARY Recommendation to authorize an increase in the purchase order for Carlton Fields,P.A., in the case of Collier County v. John Reynolds& Sons,Inc., et al., Case No. 10-6658-CA(South Reverse Osmosis Raw Water Wellfield Pipeline Project No. 70030)(Fiscal Impact an additional $200,000). OBJECTIVE: That the Board of County Commissioners authorize an increase to the Purchase Order for outside counsel Carlton Fields, P.A., in accordance with Collier County's Board approved retainer agreement with Carlton Fields, P.A., to provide continued litigation services in the case of Collier County v. John Reynolds &Sons, Inc., et al., Case No. 10-6658-CA. CONSIDERATIONS: Collier County retained the law firm of Carlton Fields to assist as co-counsel in the above-referenced lawsuit, which seeks damages incurred as a result of failures pertaining to the construction of the South Reverse Osmosis Wellfield pipeline. The County initially sued the contractor, John Reynolds & Sons, Inc. and its surety, Travelers Casualty and Surety Company of America. Since the original filing of this action, the County amended its complaint to include Camp Dresser & McKee, Inc., Greeley and Hansen, LLC and Hazen and Sawyer, P.C.; all engineering firms involved in either the design or providing construction engineering inspection services on the project. Including the County, there is now a total of twelve parties involved in this complex litigation; which involves numerous claims, witnesses, experts, and the defense of a counterclaim asserted by Reynolds against the County. The County's damages are estimated at over $9,000,000. The litigation has involved written discovery involving hundreds of thousands of documents and the depositions of witnesses that are critical to proceeding to trial or advancing settlement discussions among the parties. An April 2013 mediation date is currently being coordinated. Staff is requesting an increase in the purchase order for Carlton Fields, P.A., to provide for its continued representation on this matter through trial, if necessary. It is difficult to ascertain with particularity how much outside counsel fees may total in this case due to uncertain variables such as: (1) the number of depositions initiated by the other parties, (2) discovery initiated by the other parties, (3) the approach of other counsel, (4) duration of trial, if applicable, and (4) other complicating factors. In the three years since the county retained Carlton Fields on this complex case, the county has paid approximately $385,000 in costs and fees. It is believed that total fees and costs could roughly range between 7-8% of the total amount of damages sought. The County is seeking to recover its costs and attorneys' fees, as part of its claim for damages, as provided for in the agreements the County entered into with the defendant contractor and engineers. At this time, Staff is requesting Board authority to increase the current purchase order by $200,000.00. FISCAL IMPACT: Funds in the amount of $200,000 are budgeted in the South RO Wellfield Raw Water Transmission Main Repair Project, 70030. Source of funds is Water User Fees (412). LEGAL CONSIDERATIONS: This item has been reviewed and approved by the County Attorney's Office, is legally sufficient for Board action and only requires a majority vote for Board approval—SRT. GROWTH MANAGEMENT IMPACT: None. RECOMMENDATION: That the Board of County Commissioners authorizes an increase to the existing purchase order for Carlton Fields, P.A., for an additional $200,000.00 for services provided in the case of Collier County v. John Reynolds & Sons, Inc., et al., Case No. 10-6658-CA (South Reverse Osmosis Raw Water Wellfield Pipeline Project No. 70030). PREPARED BY: Scott R. Teach,Deputy County Attorney Packet Page-1683- 1/22/2013 Item 16.K.2. COLLIER COUNTY Board of County Commissioners Item Number: 16.K.2. Item Summary: Recommendation to authorize an increase in the purchase order for Carlton Fields, P.A., in the case of Collier County v.John Reynolds &Sons, Inc., et al., Case No. 10-6658-CA (South Reverse Osmosis Raw Water Wellfield Pipeline Project No. 70030) (Fiscal Impact an additional $200,000). Meeting Date: 1/22/2013 Prepared By Name: CrotteauKathynell Title: Legal Secretary,County Attorney 1/11/2013 12:26:40 PM Approved By Name: Joseph Bellone Title: Manager-Utility Billing&Cust Serv.,Utilities F Date: 1/14/2013 10:24:51 AM Name: YilmazGeorge Title: Administrator,Public Utilities Date: 1/14/2013 11:20:15 AM Name: TeachScott Title: Deputy County Attomey,County Attorney Date: 1/15/2013 11:16:34 AM Name: KlatzkowJeff Title: County Attorney Date: 1/15/2013 12:00:11 PM Name: UsherSusan Title: Management/Budget Analyst, Senior,Office of Manage Date: 1/15/2013 1:20:43 PM Name: GreenwaldRandy Title: Management/Budget Analyst,Office of Management&B Packet Page-1684- 1/22/2013 Item 16.K.2. Date: 1/15/2013 2:01:09 PM Avok Name: OchsLeo Title: County Manager Date: 1/15/2013 2:06:52 PM Packet Page-1685-