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Agenda 05/28/2019 Item #16K 1 (Settlement Agreement - Manhattan Road & Bridge, Inc.)05/28/2019 EXECUTIVE SUMMARY Recommendation to approve the attached Settlement Agreement and Release between the Collier County Board of County Commissioners and Manhattan Road & Bridge, Inc., pertaining to the White Boulevard over Cypress Canal Bridge Project (Project No. 66066.10). OBJECTIVE: To approve a Settlement Agreement and Release between the Board of County Commissioners of Collier County and Manhattan Road & Bridge, Inc. (hereafter “Manhattan”), allowing for the final close out of Project No. 66066.10. CONSIDERATIONS: The County and Manhattan Road & Bridge, Inc. entered into Agreement No. 16- 6662 on October 11, 2016, to build the White Boulevard over Cypress Canal Bridge Project. Due to various issues more fully set forth in the attached Settlement Agreement and Release, and briefly discussed below, Manhattan did not achieve substantial completion until 125 days after the 548 days allotted for substantial completion (the “Contract Time”) from the date of commencement. Agreement No. 16-6662 entitles Collier County to assess liquidated damages in the amount of $2,876 per day, for each day it takes the contractor to reach Substantial Completion beyond the Contract Time. During construction, disputes arose concerning timely performance and requests for extensions of time. Some of the time-related issues concerned reasonable, legitimate delays caused by such matters as: (1) FPL-related delays resulting from adjacent wildfires in the area, (2) Hurricane Irma, (3) unanticipated underground soil conditions, and (4) excavation issues related to digging in canal water with a solid limestone base. Staff’s review of the issue resulted in a determination it could recommend adding 67 days to the original Contract Time as result of the above-mentioned instances of delay. Not all the delay, however, is associated with such events. Staff recommends that the Board approved the attached Settlement Agreement and Release wherein the County agrees to give Manhattan 67 additional days to the Agreement’s Substantial Completion Contract Time, leaving Manhattan responsible for the remaining 58 days of liquidated damages, which amounts to $166,808. The set-off of those 67 additional days, as well as the remaining 58 days’ worth of liquidated damages will be addressed and reconciled in Manhattan’s Final Payment Application to close out the Project. The Settlement Agreement and Release reserves to the County its rights to recover for any latent defects and warranty-related items of the Project within the applicable warranty period. Notwithstanding the delayed completion of the Project, the construction was successfully completed; and because a temporary bridge remained in place, the travelling public was not hindered. Further, Manhattan accomplished the construction of the Project without the County needing to resort to spending any of the $256,500 allowance that was built into the contract bid amount. FISCAL IMPACT: Funds in the amount of $166,808 will be recognized as a credit to reflect 58 days of liquidated damages to be assessed against Manhattan Road & Bridge Inc. by Collier County. GROWTH MANAGEMENT IMPACT: There is no Growth Management Impact associated with this action. 16.K.1 Packet Pg. 1397 05/28/2019 LEGAL CONSIDERATIONS: This item has been approved as to form and legality and re quires a majority vote for Board approval . -SRT RECOMMENDATION: Approve the attached Settlement Agreement and Release and authorize the Chairman to execute same on behalf of the Board. Prepared by: Steve Ritter, Construction Manager, Transportation Engineering Division, Growth Management Department Scott R. Teach, Deputy County Attorney ATTACHMENT(S) 1. Settlement Agreement and Release 5.7.19 (002) (PDF) 16.K.1 Packet Pg. 1398 05/28/2019 COLLIER COUNTY Board of County Commissioners Item Number: 16.K.1 Doc ID: 8884 Item Summary: Recommendation to approve the attached Settlement Agreement and Release between the Collier County Board of County Commissioners and Manhattan Road & Bridge, Inc., pertaining to the White Boulevard over Cypress Canal Bridge Project (Project No. 66066.10). Meeting Date: 05/28/2019 Prepared by: Title: Legal Office Administrator – County Attorney's Office Name: Debbie Allen 05/07/2019 11:56 AM Submitted by: Title: County Attorney – County Attorney's Office Name: Jeffrey A. Klatzkow 05/07/2019 11:56 AM Approved By: Review: Growth Management Department Christine Arnold Level 1 Reviewer Completed 05/07/2019 12:20 PM Transportation Engineering Steve Ritter Additional Reviewer Completed 05/07/2019 12:47 PM Transportation Engineering Jay Ahmad Additional Reviewer Completed 05/07/2019 3:29 PM Growth Management Department James C French Deputy Department Head Review Skipped 05/07/2019 4:49 PM Growth Management Department Thaddeus Cohen Department Head Review Completed 05/07/2019 5:15 PM County Attorney's Office Scott Teach Level 2 Attorney Review Completed 05/10/2019 2:45 PM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 05/13/2019 2:09 PM Office of Management and Budget Laura Zautcke Additional Reviewer Completed 05/16/2019 5:05 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 05/17/2019 8:24 AM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 05/19/2019 8:46 AM Board of County Commissioners MaryJo Brock Meeting Pending 05/28/2019 9:00 AM 16.K.1 Packet Pg. 1399 16.K.1.a Packet Pg. 1400 Attachment: Settlement Agreement and Release 5.7.19 (002) (8884 : Settlement Agreement & Release - Manhattan Road & Bridge, Inc. - Project 16.K.1.a Packet Pg. 1401 Attachment: Settlement Agreement and Release 5.7.19 (002) (8884 : Settlement Agreement & Release - Manhattan Road & Bridge, Inc. - Project 16.K.1.a Packet Pg. 1402 Attachment: Settlement Agreement and Release 5.7.19 (002) (8884 : Settlement Agreement & Release - Manhattan Road & Bridge, Inc. - Project 16.K.1.a Packet Pg. 1403 Attachment: Settlement Agreement and Release 5.7.19 (002) (8884 : Settlement Agreement & Release - Manhattan Road & Bridge, Inc. - Project 16.K.1.a Packet Pg. 1404 Attachment: Settlement Agreement and Release 5.7.19 (002) (8884 : Settlement Agreement & Release - Manhattan Road & Bridge, Inc. - Project 16.K.1.a Packet Pg. 1405 Attachment: Settlement Agreement and Release 5.7.19 (002) (8884 : Settlement Agreement & Release - Manhattan Road & Bridge, Inc. - Project 16.K.1.a Packet Pg. 1406 Attachment: Settlement Agreement and Release 5.7.19 (002) (8884 : Settlement Agreement & Release - Manhattan Road & Bridge, Inc. - Project 16.K.1.a Packet Pg. 1407 Attachment: Settlement Agreement and Release 5.7.19 (002) (8884 : Settlement Agreement & Release - Manhattan Road & Bridge, Inc. - Project