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Agenda 01/11/2022 Item #16C 2 (Agreement & Release w/Douglas N. Higgins, staff to issue a PO for the satisfaction of all claims on the Creekside FOrce Main Extension Phase 1)01/11/2022 EXECUTIVE SUMMARY Recommendation to approve the attached Settlement Agreement and Release with Douglas N. Higgins, Inc., and authorize Staff to issue a purchase order in the amount of $83,350.00 in satisfaction of all claims on the Creekside Force Main Extension Phase 1 project, Wastewater User Capital Fund (414), Project No. 70044. OBJECTIVE: To resolve a dispute between the County and Douglas N. Higgins, Inc. (“Higgins”) regarding the Creekside Force Main Extension Phase I Project. CONSIDERATIONS: On September 13, 2016, (Agenda Item 16.C.4) the Board awarded the Creekside Force Main Extension Phase I Agreement No. 14-6213-71 to Higgins in the amount of $638,659.00. The scope of work included a 173-foot-long jack and bore operation to install 36” diameter steel casing under U.S. 41 at Creekside Boulevard. On January 25, 2017, the jack and bore operation failed after approximately 50-feet of casing was installed. The northbound U.S. 41 right hand turn lane onto Creekside Boulevard was compromised, and any further progress would have jeopardized U.S. 41 travel lane integrity during season. Higgins removed the casing and restored the project site and the roadway to FDOT specifications. All other project work was terminated. Higgins otherwise successf ully completed the remainder of the project and the County made payments in the amount of $255,621.60 to Higgins. Notwithstanding, the County and Higgins dispute the cause of jack and bore failure. Higgins claims that it incurred $113,424.68 in unreimbursed jack and bore costs. In a January 17, 2019 meeting, the County offered Higgins $60,429.04 in compromise for the prorated cost of the 50 -feet of installed casing, which Higgins declined. The County and Higgins now agree to the settlement amount of $83,350.00, such that the total compensation for the Project is $367,374.00. (See Attachment 1, Settlement Agreement and Release.) Paid To be Paid Total Paid for completed work $255,621.60 $255,621.60 Retainage previously withheld $28,402.40 $28,402.40 Settlement $83,350.00 $83,350.00 $255,621.60 $111,752.40 $367,374.00 Douglas N. Higgins, Inc. is a Florida licensed general and underground utility contractor. They have been providing plant and underground utility contracting services to Collier County for more than 30 years. Since reorganizing in 2017, Higgins has consistently delivered satisfactory projects while meeting schedule and budget commitments. The recommended settlement represents a reasonable compromise for actual services provided on this project. FISCAL IMPACT: Once the settlement agreement is approved by the Board, the existing purchase order to Higgins will be closed and funding will be available in Wastewater User Fee Capital Fund (414), Project 70044. GROWTH MANAGEMENT IMPACT: There is no growth management impact created by this item. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for Board approval. -SRT RECOMMENDATION: That the Board of County Commissioners, Ex-officio the Governing Board of the Collier County Water-Sewer District, authorize the Chair to sign the attached Settlement Agreement 16.C.2 Packet Pg. 352 01/11/2022 and Release, and authorize a purchase order in the amount of $83,350.00 to Douglas N. Higgins, Inc. for payment under the Settlement Agreement. Prepared by: Tom S. Chmelik, Public Utilities Engineering and Project Management Director ATTACHMENT(S) 1. Attachment 1: Settlement Agreement Higgins 120921 DNH Final (PDF) 16.C.2 Packet Pg. 353 01/11/2022 COLLIER COUNTY Board of County Commissioners Item Number: 16.C.2 Doc ID: 20718 Item Summary: Recommendation to approve the attached Settlement Agreement and Release with Douglas N. Higgins, Inc. and authorize Staff to issue a purchase order in the amount of $83,350.00 in satisfaction of all claims on the Creekside Force Mai n Extension Phase 1 project, Wastewater User Capital Fund (414), Project No. 70044. Meeting Date: 01/11/2022 Prepared by: Title: Division Director - Public Utilities Eng – Public Utilities Planning and Project Management Name: Tom Chmelik 12/14/2021 5:14 PM Submitted by: Title: Division Director - Public Utilities Eng – Public Utilities Planning and Project Management Name: Tom Chmelik 12/14/2021 5:14 PM Approved By: Review: Public Utilities Operations Support Joseph Bellone Additional Reviewer Completed 12/15/2021 7:47 AM Procurement Services Ana Reynoso Level 1 Purchasing Gatekeeper Completed 12/15/2021 9:05 AM Procurement Services Catherine Bigelow Additional Reviewer Completed 12/15/2021 11:10 AM Procurement Services Sandra Herrera Additional Reviewer Completed 12/15/2021 1:23 PM Public Utilities Department Drew Cody Level 1 Division Reviewer Completed 12/15/2021 1:36 PM Public Utilities Department Joseph Bellone Level 2 Division Administrator Review Completed 12/15/2021 1:39 PM County Attorney's Office Scott Teach Level 2 Attorney Review Completed 12/22/2021 9:22 PM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 12/23/2021 8:19 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 12/23/2021 9:26 AM Office of Management and Budget Susan Usher Additional Reviewer Completed 12/27/2021 12:01 PM County Manager's Office Amy Patterson Level 4 County Manager Review Completed 12/30/2021 10:02 AM Board of County Commissioners Geoffrey Willig Meeting Pending 01/11/2022 9:00 AM 16.C.2 Packet Pg. 354 16.C.2.aPacket Pg. 355Attachment: Attachment 1: Settlement Agreement Higgins 120921 DNH Final (20718 : Higgins Settlement Agreement) 16.C.2.aPacket Pg. 356Attachment: Attachment 1: Settlement Agreement Higgins 120921 DNH Final (20718 : Higgins Settlement Agreement) 16.C.2.aPacket Pg. 357Attachment: Attachment 1: Settlement Agreement Higgins 120921 DNH Final (20718 : Higgins Settlement Agreement) 16.C.2.aPacket Pg. 358Attachment: Attachment 1: Settlement Agreement Higgins 120921 DNH Final (20718 : Higgins Settlement Agreement) 16.C.2.aPacket Pg. 359Attachment: Attachment 1: Settlement Agreement Higgins 120921 DNH Final (20718 : Higgins Settlement Agreement) 16.C.2.aPacket Pg. 360Attachment: Attachment 1: Settlement Agreement Higgins 120921 DNH Final (20718 : Higgins Settlement Agreement) 16.C.2.aPacket Pg. 361Attachment: Attachment 1: Settlement Agreement Higgins 120921 DNH Final (20718 : Higgins Settlement Agreement)