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Agenda 06/24/2025 Item #16B2 (An after-the-fact payment of $103,572.26 to Horsepower Electric, Inc., for the "Signal Hardening at Airport Rd & Poinciana Elementary School" project)6/24/2025 Item # 16.B.2 ID# 2025-1786 Executive Summary Recommendation to approve an after-the-fact payment of $103,572.26 to Horsepower Electric, Inc., for the "Signal Hardening at Airport Rd & Poinciana Elementary School" project. OBJECTIVE: To approve an after-the-fact payment to Horsepower Electric, Inc., for materials purchased for the signal hardening project at the intersection of Airport Road & Poinciana Elementary School (the “Project”). CONSIDERATIONS: On October 24, 2023 (Agenda Item 16.B.1), the Board approved Agreement No. 23-8119 (the “Agreement”) with Horsepower Electric, Inc., (the “Contractor”) to complete the construction of the signal hardening project at the intersection of Airport Road & Poinciana Elementary School. On September 13, 2024, staff issued the Contractor a Notice to Proceed (“NTP”) to start construction on the project on October 14, 2024. On December 5, 2024, the Contractor submitted a Payment Application for materials purchased and work performed for the Project, which included payment items for materials that were ordered for the project prior to staff’s NTP commencement date. To address the issue involving the Contractor’s purchase of materials before the issuance of the NTP, while at the same time ensuring that the Contractor was timely reimbursed for work/materials performed/acquired after the NTP, the County processed a “short payment” to provide reimbursement for the work and materials provided after the issuance of the NTP. The items that were not remitted, totaling $103,572.26, correspond to materials purchased by the Contractor prior to the official NTP date of October 14, 2024. These include the following invoices: • Torres Invoice No. 1063106-01 dated 05/20/2024 (Mast Arm Assemblies) – $76,897.88 • ITS Invoice No. 24-01-154A dated 10/10/2024 (Network Switch) – $5,918.16 • TCS Invoice No. 24219 dated 06/13/2024 (Vehicle Detection & Preemption)– $9,265.64 • Temple Invoice No. INV0247554 dated 09/27/2024 (Uninterruptible Power Supply, Traffic Signal Heads, Pedestrian Detection) – $11,490.58 The amount previously paid reflects only the materials and services performed after the NTP and is aligned with the Schedule of Values submitted with the Contractor’s Payment Application. The outstanding amount listed above remains unpaid and is supported by the attached documentation. Although staff provided written approval for the Contractor to order and store material early due to long lead times, staff omitted issuing a formal “limited NTP” memorializing the County’s authorization for the Contractor to begin the acquisition and storage of materials before starting the actual work under the Agreement. A corrective action plan has been developed to address this procedural lapse and prevent recurrence. The plan includes the implementation of a mandatory internal refresher training for staff managing projects, focused on the proper issuance and documentation of NTPs and LNTPs, as well as guidelines for pre-construction procurement activities. Staff will also be required to review and acknowledge the relevant sections of the County Procurement Manual and Procedures established to ensure management approval is in place before any commitments are made. There is no growth management impact associated with this action. FISCAL IMPACT: Funding is encumbered under PO 4500230424. Source of funding is gas tax. GROWTH MANAGEMENT IMPACT: This recommendation has no Growth Management Plan impact. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for Board approval. —SRT RECOMMENDATIONS: To approve an after-the-fact payment of $103,572.26 to Horsepower Electric, Inc., for the "Signal Hardening at Airport Rd & Poinciana Elementary School" project. Page 1332 of 3580 6/24/2025 Item # 16.B.2 ID# 2025-1786 PREPARED BY: Christopher Ordonez, P.E., Project Manager II, Transportation Management Services ATTACHMENTS: 1. 23-8119 Signal Improvement at Airport Rd and Poinciana Elementary School ATF Signed Revised 2. PA#1 - Airport Rd & Poinciana_Horsepower Page 1333 of 3580 After-the-Fact Form Page 1 of 2 September 2024 Per section 21 of the Procurement Manual, all purchases shall be consistent and in compliance with the Procurement Ordinance (2017-08). Should work be authorized or purchases made that are inconsistent with County policy, procedure, or contract terms, an After-the-Fact Procurement Form is required. Vendor Name: Reason for ATF: Other (Explain): Amount: Date of Purchase: Contract #: Purchase Order #: Describe goods/services purchased: Details of the Purchase: Have the goods been received, or have the services been performed? Yes No Has the vendor been paid? Yes No Action Required (choose one): Ratification of payment already made Authorize payment to the vendor Other (Explain): Why is this deemed a non-compliant purchase? Choose one. Contract Other (Explain): Ordinance Manual P-Card Purchase Order Division: Department: All fields are required and are based on the division and department structure. If electronic signatures are used, the date fields are optional. Requester Signature Date Division Director Signature Date Department Head or Executive Director Signature Date Page 1334 of 3580 After-the-Fact Form Page 2 of 2 September 2024 Corrective/Preventative Action (choose all that apply). Procurement 101 Training Quoting 101 Training Internal Process Refresher Training Review Procurement Ordinance P-Card Training Review Procurement Manual Other: _____________________________________________________________________________________________ ___________________________________________________________________________________________ By signing and submitting this form, I acknowledge that I am responsible for managing and overseeing procurement actions and contracts in line with the requirements of the Procurement Manual, the Procurement Ordinance, and contract terms. I understan d that any after-the-fact approvals or other remedial actions that could have been prevented will lead to counseling, training, corrective measures, and progressive discipline, as appropriate, for both the employee and my supervisor. Additionally, I affirm my co mmitment to completing any corrective or preventive actions assigned by the Division Director to prevent future occurrences of after -the-fact purchases. Requester Signature Date The Division Director acknowledges their responsibility for implementing all necessary actions to prevent future occurrences of after- the-fact approvals. They also affirm that appropriate measures, including employee and supervisor counseling, training, corrective actions, and progressive discipline, will be provided to staff as required by the circumstances. Division Director Signature Date Reviewed: Procurement Signature Date Deputy County Manager Signature Date Submit After-the-Fact requests to Procurement Services via the Jira Ticketing System. After-the-Fact requests less than $15,000 will be placed on the Procurement Administrative Report for approval by the Board of County Commissioners. After-the-Fact requests greater than $15,000 will require approval by the Board of County Commissioners via an agenda item. The Division is responsible for creating the agenda item and Executive Summary and providing all required documentation. Page 1335 of 3580 Page 1336 of 3580 Hanson Professional Services, Inc 12/12/24 Page 1337 of 3580 Page 1338 of 3580 Page 1339 of 3580 Page 1340 of 3580 Page 1341 of 3580 Page 1342 of 3580 Page 1343 of 3580 Page 1344 of 3580 Page 1345 of 3580 Page 1346 of 3580 Page 1347 of 3580 Page 1348 of 3580 Page 1349 of 3580 Page 1350 of 3580 Page 1351 of 3580 Page 1352 of 3580 Page 1353 of 3580