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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) 16.K.3 Packet Pg. 970 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 16.K.3 Packet Pg. 971 16.K.3.a Packet Pg. 972 Attachment: Settlement Agreement Executed by Surety (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.a Packet Pg. 973 Attachment: Settlement Agreement Executed by Surety (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.a Packet Pg. 974 Attachment: Settlement Agreement Executed by Surety (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.a Packet Pg. 975 Attachment: Settlement Agreement Executed by Surety (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.a 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) 16.K.3.bPacket Pg. 980Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 981Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 982Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 983Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 984Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 985Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 986Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 987Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 988Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 989Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 990Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 991Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 992Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 993Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 994Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 995Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 996Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 997Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 998Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 999Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1000Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1001Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1002Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1003Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1004Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1005Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1006Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1007Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1008Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1009Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1010Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1011Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1012Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1013Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1014Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1015Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1016Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1017Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1018Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1019Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1020Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1021Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1022Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1023Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1024Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1025Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1026Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1027Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1028Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1029Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1030Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1031Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1032Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1033Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1034Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1035Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1036Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1037Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1038Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 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America USA) 16.K.3.bPacket Pg. 1046Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1047Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1048Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1049Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1050Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1051Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1052Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1053Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1054Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1055Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1056Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1057Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1058Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1059Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1060Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1061Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1062Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1063Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1064Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA) 16.K.3.bPacket Pg. 1065Attachment: 18-7286 ForidaSafety_Contract (24259 : Approve a settlement with The Guarantee Company of North America USA)