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Agenda 11/08/2022 Item #16K 3 (Status Update for the litigation v. Mammoth Constrctors, LLC)11/08/2022 EXECUTIVE SUMMARY Recommendation to approve a Status Update for the litigation styled Collier County v. Mammoth Constructors, LLC, (Case No. 2021-CA-000132) now pending in the Circuit Court of the Twentieth Judicial Circuit in and for Collier County, Florida, and authorize the necessary budget amendment. OBJECTIVE: To update the Board on current litigation with Mammoth Constructors. CONSIDERATIONS: On January 12, 2021, the Board authorized the County Attorney's Office to file a civil action to recover damages against Mammoth Constructors and any other parties determined to be liable in connection with damage to a Collier County force main during work on Federal Project ID 433173-1-52-01. Mammoth Constructors was drilling a shaft for the foundation of a new signal mast on the northwest comer of Davis Boulevard and County Bam Road when it struck a County 24" wastewater force main causing significant damage and a release of raw sewage. The County Attorney's Office is working with outside counsel, Carlton Fields, to recover damages of $654,562. To date, the County has incurred approximately $280,000 in attorney's fees. Despite on -going settlement negotiations, this case is not likely to settle and is set for trial in January 2023. The County served an Offer of Judgment (settlement offer) on June 14, 2022; this proposal was refused by Mammoth, however this proposal will entitle the County to recover its attorney's fees and costs from the date of filing. The County's expenditures prior to June 14' were approximately $150,000. Fees and costs going forward from the date the proposal for settlement was served are recoverable from Mammoth if the County obtains a judgment for 25% more than the amount of the proposal for settlement. Given the posture of the case, the County has a good faith belief that it will prevail at trial. In the event that County does not prevail at trial, the County's exposure becomes much greater given the anticipated cost of trying this case is approximately $250,000. The County Attorney supports proceeding with trial in this matter to provide notice to contractors that the County will seek to recover its full damages from contractors who cause material damage to County property. It is the further opinion of the County Attorney that failure to prosecute this matter to the end will likely result in far greater costs to the County in the long run as without a reputation that we are serious there would be no incentive for contractors to quickly settle. FISCAL IMPACT: The County has incurred approximately $280,000 in attorney's fees to date. The anticipated cost of jury trial is approximately $250,000. If the County should prevail at the trial, expenses incurred over $150,000 are recoverable under the Offer of Judgment. A budget amendment in the amount of $145,000 is needed to reallocate funds to project 7105 8 in Wastewater User Fee Capital Fund (414). GROWTH MANAGEMENT IMPACT: None. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires a majority vote for Board approval. - JAK RECOMMENDATION: To approve the Status Update for the litigation styled Collier County v. Mammoth Constructors, LLC (Case No. 2021 -CA-000 13 2) now pending in the Circuit Court of the Twentieth Judicial Circuit in and for Collier County, Florida and authorize the necessary budget amendment. I Packet Pg. 1693 11/08/2022 COLLIER COUNTY Board of County Commissioners Item Number: 16.K.3 Doe ID: 23783 Item Summary: Recommendation to approve a Status Update for the litigation styled Collier County v. Mammoth Constructors, LLC, (Case No. 2021 -CA-000 132) now pending in the Circuit Court of the Twentieth Judicial Circuit in and for Collier County, Florida, and authorize the necessary budget amendment. Meeting Date: 11/08/2022 Prepared by: Title: — County Attorney's Office Name: Madison Bird 10/31/2022 1:39 PM Submitted by: Title: County Attorney — County Attorney's Office Name: Jeffrey A. Klatzkow 10/31/2022 1:39 PM Approved By: Review: Public Utilities Planning and Project Management Matthew McLean Public Utilities Operations Support Public Utilities Department Public Utilities Operations Support County Attorney's Office Office of Management and Budget Office of Management and Budget County Attorney's Office County Manager's Office Board of County Commissioners Katrina Lin Additional Reviewer AmiaMarie Curry Level 2 Division Administrator Review AmiaMarie Curry Additional Reviewer Colleen Greene Level 2 Attorney Review Debra Windsor Level 3 OMB Gatekeeper Review Christopher Johnson Additional Reviewer Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Dan Rodriguez Level 4 County Manager Review Geoffrey Willig Meeting Pending Additional Reviewer Completed 11 /0 1 /2022 11:53 AM Completed 11/01/2022 12:44 PM Completed 11/01/2022 3:18 PM Completed 11/01/2022 3:18 PM Completed 11/02/2022 9:13 AM Completed 11/02/2022 9:23 AM Completed 11 /02/2022 9:30 AM Completed 11/02/2022 9:53 AM Completed 11 /02/2022 11:10 AM 11 /08/2022 9: 00 AM I Packet Pg. 1694 1