Agenda 01/24/2023 Item #16K3 (To approve a settlement with The Guarantee Company of North American USA, the Surety for Florida Safety Contractors for Florida Safety Contractors default under Contract No.18-7286)01/24/2023
EXECUTIVE SUMMARY
Recommendation to approve a settlement with The Guarantee Company of North America USA, the Surety
for Florida Safety Contractors, for Florida Safety Contractor’s default under Contract No. 18-7286 and
defective work on the Goodlette-Frank Road at Fleischmann Boulevard Roadway and Signalization
Improvements project.
_____________________________________________________________________________________
OBJECTIVE: Recommendation to approve a settlement with The Guarantee Company of North America USA,
the Surety for Florida Safety Contractors, for Florida Safety Contractor’s default under Contract No. 18 -7286 and
defective work on the Goodlette-Frank Road at Fleischmann Boulevard Roadway and Signalization Improvements
project.
CONSIDERATIONS: On September 11, 2018, the Board of County Commissioners (“Board”) approved
Contract No. 18-7286 (the “Contract”) for the Goodlette-Frank Road at Fleischmann Boulevard Roadway and
Signalization Improvements (“Project”) with Florida Safety Contractors (“Contractor”). The Guarantee Company
of North America USA (the “Surety”) provided a performance bond in favor of the County to secure the
Contractor’s performance obligations on the Project, which bond is numbered 80157398. The purpose of the
Project was to lengthen the northbound and southbound left turn lanes in the median of Goodlette -Frank Road at
the Fleischmann Boulevard/Zoo Entrance, add a right turn lane for southbound traffic onto westbound Fleischmann
Boulevard, and upgrade the existing concrete strain pole traffic signal to a steel mast arm structure.
The County has experienced difficulties with the Contractor’s ability to meet certain scheduling and performance
milestones beginning in April 2020. Liquidated damages were assessed against the Contractor totaling $132,102
and were deducted from payments made to the Contractor. To date, the County is withholding $72,637.60 in
retainage on the Project. In December 2020, the Contractor stopped work on the Project and indicated that it no
longer has the field crews to complete the Project. In February 2021, staff formally notified the Contractor of
default on the Project and provided it an opportunity to cure the default. In addition to the Contractor’s default of its
obligations under the Contract, County staff determined that some of the work completed by the Contractor was
defective, including, but not limited to, signalization failures and a deficient northern pedestrian crosswalk and
median crossing. The Contractor did not respond to this notice, and subsequently the County Attorney’s Office
made a claim with its Surety, The Guarantee Company of North America USA, for resolution of the Contractor’s
default and defective work on the Project.
The County alleged that the Surety owed Collier County $48,362.40, based on liquidated damages assessed and
repair of the defective work. The Surety alleged that the County owed the Surety $274,704.22 based on dispute
related to the remaining contract balance and the liquidated damages calculation. Following mult iple negotiations,
the County and the Surety have reached an agreement wherein the County will retain its retainage on the Project for
repair of the defective work and the Parties agree to release one another from any and all further obligations and/or
warranties under the performance bond.
The County Attorney and the Transportation Engineering Division recommend that the Board approve this
settlement as reasonable. Should the case proceed to litigation, the costs are expected to exceed the amount the
County believes that the Surety owes.
FISCAL IMPACT: The County will retain the $72,637.60 retainage amount.
GROWTH MANAGEMENT IMPACT: None.
LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires a majority vote for
approval. - SAA
16.K.3
Packet Pg. 969
01/24/2023
RECOMMENDATION: For the Board of County Commissioners to approve and authorize the Chairman to
execute the Settlement Agreement with The Guarantee Company of North America USA, the Surety for Florida
Safety Contractors, for Florida Safety Contractor’s default under Contract No. 18-7286 and defective work on the
Goodlette-Frank Road at Fleischmann Boulevard Roadway and Signalization Improvements project.
PREPARED BY: Sally A. Ashkar, Assistant County Attorney
ATTACHMENT(S)
1. Settlement Agreement Executed by Surety (PDF)
2. 18-7286 ForidaSafety_Contract (PDF)
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01/24/2023
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.K.3
Doc ID: 24259
Item Summary: Recommendation to approve a settlement with The Guarantee Company of North America USA,
the Surety for Florida Safety Contractors, for Florida Safety Contractor’s default under Contract No. 18 -7286 and
defective work on the Goodlette-Frank Road at Fleischmann Boulevard Roadway and Signalization Improvements
project.
Meeting Date: 01/24/2023
Prepared by:
Title: Legal Assistant – County Attorney's Office
Name: Wanda Rodriguez
01/04/2023 10:08 AM
Submitted by:
Title: County Attorney – County Attorney's Office
Name: Jeffrey A. Klatzkow
01/04/2023 10:08 AM
Approved By:
Review:
Transportation Engineering Jay Ahmad Additional Reviewer Completed 01/13/2023 12:52 PM
Growth Management Department Anthony Khawaja Additional Reviewer Completed 01/17/2023 11:32 AM
Growth Management Department Trinity Scott Additional Reviewer Completed 01/17/2023 11:38 AM
County Attorney's Office Sally Ashkar Additional Reviewer Completed 01/17/2023 12:05 PM
Office of Management and Budget Wanda Rodriguez Level 3 OMB Gatekeeper Review Skipped 01/04/2023 10:07 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 01/17/2023 1:13 PM
County Manager's Office Amy Patterson Level 4 County Manager Review Completed 01/18/2023 11:10 AM
Board of County Commissioners Geoffrey Willig Meeting Pending 01/24/2023 9:00 AM
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Packet Pg. 972 Attachment: Settlement Agreement Executed by Surety (24259 : Approve a settlement with The Guarantee Company of North America USA)
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Packet Pg. 976 Attachment: Settlement Agreement Executed by Surety (24259 : Approve a settlement with The Guarantee Company of North America USA)
16.K.3.bPacket Pg. 977Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA)
16.K.3.bPacket Pg. 978Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA)
16.K.3.bPacket Pg. 979Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA)
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16.K.3.bPacket Pg. 982Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA)
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