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Agenda 06/22/2010 Item #16K 3 Agenda Item No. 16K3 June 22, 2010 Page 1 of 4 EXECUTIVE SUMMARY Recommendation that the Board of County Commissioners, as Ex-officio the Governing Board of the Collier County Water-Sewer District, approve the filing of a civil action against Camp Dresser & McKee, Inc. (Engineering Design), Hazen and Sawyer, P.c. (Construction Engineering Inspector), and John Reynold & Sons, Inc. d/b/a Reynolds, Inc. (Contractor) to recover damages incurred as a result of the raw water transmission pipeline failure at the South Reverse Osmosis Raw Water Wellfield that occurred on February 19, 2010. OBJECTIVE: For the Board of County Commissioners, as Ex-officio the Governing Board of the Collier County Water-Sewer District, to authorize the filing of a civil action against Camp Dresser & McKee, Inc. ("CDM"), Hazen and Sawyer, P.c. ("H&S"), and John Reynold & Sons, Inc. d/b/a Reynolds, Inc. ("Reynolds") to recover damages incurred as a result of the raw water transmission pipeline failure at the South Reverse Osmosis Raw Water Wellfield that occurred on February 19,2010. CONSIDERATIONS: On February 19, 2010, after less than one year in service, approximately 750 feet of 30-inch fusible PVC raw water transmission main in the South RO Wellfield ruptured, automatically shutting down the reverse osmosis process at the South County Regional Water Treatment Plant ("SCRWTP"). In order to identify the cause of the pipe failure and to prevent future incidents from occurring, the Public Utilities Division commenced an investigation headed by a team of forensic engineering consultants working for Malcolm Pirnie, Inc. Malcolm Pirnie determined that the pipe failure occurred in at least two rapid sequential stages, over a period of no more than a few seconds. Malcolm Pirnie deduced that the initial failure was caused by improper bedding of the pipe in the trench during construction; that is, the pipe was laid directly on cap rock or on a broken piece of rock supported by cap rock, which gradually gouged the pipe wall creating a weak point causing the pipe to rupture. Further collateral damage resulted due to air entrapped in the pipeline related to the installation of Air Release Valves (ARVs) proposed by the contractor and approved by the enl,>1neer of record, which did not follow the manufacturer's recommendation for the design. The foregoing represents an abbreviated analysis of the cause of the failure a more thorough report prepared by Malcolm Pirnie is attached hereto. The cost to repair the pipeline at the SCRWTP and make changes to the system to avoid similar incidents in the future could cost as much as $2,500,000. On June 8, 2010, the Board approved a budget amendment to reallocate funds in the amount of $2,000,000.00 from reserves to the South Reverse Osmosis Raw Water Well field Pipeline Repair Project, project number 70030; which authorization included funds for potential legal costs in pursuing recovery of damages. County staff is engaging in informal discussions with CDM, H&S, and Reynolds in an attcmpt to recover damages to make the county whole and to prevent similar pipeline failures in the future but there is a need to promptly move forward with the project to make the required repairs and bring the system back to full operation by December 15, 2010. If an al,'feement cannot be reached with those parties, subject to the Board's approval, authorization is sought to file a lawsuit to recover - Agenda Item No. 16K3 June 22, 2010 Page 2 of 4 damages. Paul Ullom, outside counsel, with the law firm of Carlton and Fields will be representing the Public Utilities Division through the firm's current contract with the County. FISCAL IMPACT: The cost to file and serve an action in the Collier County Circuit Court is approximately $400. Funds are available to commence a lawsuit in the Public Utilities' South Reverse Osmosis Raw Water Wellfield Pipeline Repair Project fund, project number 70030. GROWTH MANAGEMENT: There is no growth management impact associated with this item. LEGAL CONSIDERATIONS: This item has been reviewed and approved by the County Attorney's Office and is legally sufficient for Board action-SRT. RECOMMENDATION: That the Board of County Commissioners, as Ex-officio the Governing Board of the Collier County Water-Sewer District, authorize the County Attorney's Office to file a lawsuit against Camp Dresser & McKee, Inc., Hazen and Sawyer, P.c., and John Reynold & Sons, Inc. d/b/a Reynolds, Inc., to recover all damages resulting from the raw water transmission pipeline failure at the South Reverse Osmosis Raw Water Wellfield that occurred on February 19,2010. PREPARED BY: Scott R. Teach, Deputy County Attorney 2 Agenda Item No. 16K3 June 22, 2010 Page 3 of 4 3 Agenda Item No. 16K3 June 22, 2010 Page 4 of 4 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: Item Summary: 16K3 Meeting Date: Recommendation that the Board of County Commissioners, as Ex~officio the Governing Board of the Collier County Water-Sewer District, approve the filing of a civil action against Camp Dresser & McKee, Inc. (Engineering Design), Hazen and Sawyer, P.C. (Construction Engineering Inspector), and John Reynold & Sons, Inc. d/b/a Reynolds, Inc. (Contractor) to recover damages incurred as a result of the raw water transmission pipeline failure at the South Reverse Osmos,s Raw Water Wellfield that occurred on February 19, 2010. 6/22/20109:00:00 AM Prepared By Scott R. Teach Deputy County Attorney Date County Attorney County Attorney 618120103:16:00 PM Approved By Scott R. Teach Deputy County Attorney Date County Attorney County Attorney 6/8120103:24 PM Approved By OMS Coordinator Date County Manager's Office Office of Management & Budget 6111/2010 10:S1 AM Approved By Jeff Klatzkow County Attorney Date 6/11120103:02 PM Approved By Susan Usher Management/Budget Analyst, Senior Date Office of Management & Budget Office of Management & Budget 6114/201011:10 AM Approved By Leo E. Ochs, Jr. County Manager Date County Managers Office County Managers Office 6/1412010 12:0S PM