Agenda 05/10/2011 Item #16K5
5/10/2011 Item 16.K.5.
EXECUTIVE SUMMARY
Recommendation to approve and authorize the Chairman to execute the attached Settlement
Agreement and Mutual Release with Surety Construction to recover damages incurred by the
County as a result of contracted work for the repair to the Pollution Control Laboratory in
Building "H" 3rd Floor in the amount of $88,559.49.
OBJECTIVE: For the Board of County Commissioners to approve and authorize the Chairman to
execute the attached Settlement Agreement and Mutual Release with Surety Construction to recover
damages incurred by the County as a result of contracted work for the repair to the Pollution Control
Laboratory in Building "H" 3rd Floor in the amount of$88,559.49.
CONSIDERATIONS: Pursuant to an Agreement for Contractor Services with SURETY
CONSTRUCTION COMPANY dated October 9, 2007 (#06-3971), and the Work Orders thereto,
SURETY CONSTRUCTION COMPANY commenced work in May 2010 on interior alterations to the
Pollution Control Laboratory on the 3rd Floor of Building "H" on the Collier County Government
Campus. SURETY hired sub-contractors to facilitate the work, one of which was D. E. MOUNTS
CORPORA TION. Due to the installation of an improper hose on a washing machine device, the hose
burst and flooded the area causing damages to the facility, machinery and equipment. Damage extended
to the first and second floors. The County sustained hard cost damages in the amount of $88,559.49 for
the repairs and replacement of machinery and equipment. The Agreement with SURETY requires the
company to have insurance and to indemnify and hold the County harmless for damages, as well as to pay
reasonable attorneys fees and costs. SURETY has executed a Settlement Agreement and Mutual Release
to reimburse the County for the total of its hard costs in the repair and replacement of equipment of
$88,559.49 and has tendered a check to the County for that amount.
Collier County and Surety Construction have tentatively agreed to this settlement pending Board of
County Commissioners' approval. The parties further agree that neither Collier County nor Surety
Construction admit any liability or fault regarding the damages alleged herein.
FISCAL IMPACT: None; the County will be made whole for the amount it paid for the repairs.
GROWTH MANAGEMENT IMP ACT: There is no growth management impact associated with this
item.
LEGAL CONSIDERATIONS: The County Attorney's Office has reviewed this settlement with the
Risk Management Department and recommends that the Board of County Commissioners approve this
Settlement Agreement. This settlement recovers 100% of the County's cost to repair the damages. This
item is legally sufficient for Board action. - CMG
RECOMMENDATION: That the Board of County Commissioners approve and authorize the
Chairnlan to execute the attached Settlement Agreement and Mutual Release with Surety Construction to
recover damages incurred by the County as a result of contracted work for the repair to the Pollution
Control Laboratory in Building "H" 3cd Floor in the amount of$88,559.49.
PREPARED BY:
Colleen M. Greene, Assistant County Attorney
II-RMG.Q02] 5111 ]
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5/10/2011 Item 16.K.5.
COLLIER COUNTY
Board of County Commissioners
Item Number:
16.K.5.
Item Summary: Recommendation to approve and authorize the Chairman to execute the
attached Settlement Agreement and Mutual Release with Surety Construction to recover
damages incurred by the County as a result of contracted work for the repair to the Pollution
Control Laboratory in Building "H" 3rd Floor in the amount of $88,559.49.
Meeting Date: 5/10/2011
Prepared By
Name: CrotteauKathynell
Title: Legal Secretary,County Attorney
4/28/20112:10:32 PM
Approved By
Name: WalkerJeff
Title: Director - Risk Management,Risk Management
Date: 4/28/2011 2:38:39 PM
Name: GreeneColleen
Title: Assistant County Attorney.County Attorney
Date: 4/28/20112:44:01 PM
Name: Klatzkow.Teff
Title: County Attorney,
Date: 4/29/2011 9:38: 15 AM
Name: GreenwaldRandy
Title: ManagementfBudget Analyst,Ofnce of Management & B
Date: 5/2/2011 2:22:35 PM
Name: SheffieldMichael
Title: Manager-Business Operations, CMO
Date: 5/2/2011 3:0 I :20 PM
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5/10/2011 Item 16.K.5.
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SETTLEMENT AGREEMENT AND
MUTUAL RELEASE
THIS AGREEMENT made and dated when executed below, by and between the
BOARD OF COUNTY COMMISSIONERS, COLLIER COUNTY FLORIDA (hereinafter
"COUNTY") and SURETY CONSTRUCTION COMPANY (hereinafter "SURETY").
WIT N E SSE T H:
WHEREAS, Collier County entered into an Agreement for Contractor Services with
SURETY CONSTRUCTION COMPANY dated October 9, 2007 (#06-3971), and the Work
Orders thereto, for work commencing in May 2010 on interior alterations to the Pollution
Control Laboratory on the 3rd Floor of Building "H" on the Collier County Government
Campus; and
WHEREAS, the County has made a claim against SURETY for damages allegedly
stemming from an incident which occurred on the County's property on or about June 18, 2010
wherein equipment installed by SURETY and/or its subcontractor leaked and caused extensive
flooding in Building H; and
WHEREAS, the parties hereto have thoroughly discusscd the positions of each, and each
wish to avoid prolonged litigation each party hereto believes it is in their respective interests to
amicably settle this matter.
NOW THEREFORE, in consideration of the preambles set forth hereinabove, and the
mutual covenants set forth herein below, and other good and valuable considerations, receipt of
which is hereby acknowledged, it is mutually agreed as follows:
1. SURETY will provide and the County will accept payment in the amount of
EIGHTY-EIGHT THOUSAND FIVE-HUNDRED FIFTY-NINE and 49/lOOths ($88,559.49)
DOLLARS U.S. as and for full payment of all its damages and costs, inclusive of all attorneys'
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5/10/2011 Item 16.K.5.
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fees and costs, the County claims to have incurred as a result of the flooding damage that
occurred between June 18, 2010 and June 21, 20 10 to floors I, 2, and 3 of Building H on the
County's campus.
2. It is agreed that no party to this Agreement and Mutual Release admits any
liability or fault on its part and enters into this Agreement for each party's own best interest.
3. This Agreement and Release shall be binding upon each party as well as their
respective owners, principals, elected officials, officers, employees, ex-employees, agents,
attorneys, representatives, insurers, spouses, successors, assigns, heirs and affiliates.
4. In consideration of the mutual promises herein and thc recitals hereinabove, the
County hereby expressly releases SURETY, as well as their attorneys, agents, representatives,
heirs, successors, assigns from any and all claims, liability for damages, costs or any other
damages, including attorneys' fees and expenses, arising out of the flooding damage that
occurred between June 18, 2010 and June 21, 2010 to floors 1,2, and 3 of Building H on the
County's campus.
5. In consideration of the mutual promises herein and the recitals hereinabove,
SURETY hcreby releases and discharges the County, as well as its elected officials, officers,
employees, ex-employees, agents, attorneys, representatives, successors, assigns, insurers and
affiliates from all claims, demands, causes of actions, costs, attorneys' fees and expenses or other
obligations it may claim against the County arising out of the flooding damage that occurred
between June 18.2010 and June 21, 2010 to floors 1,2, and 3 of Building H on the County's
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campus.
6. This Agreement and Release can be executed in counterparts, each counterpart to
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be dated on the date it is executed.
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5/10/2011 Item 16.K.5.
7. This Agreement cannot be modified unless done so in writing and signed by each
respective party.
DATED THIs..:2'7 ~ DAY OF ~( I I
,2011.
SURETY CONSTRUCTION COMPANY
LLY, PLENT
STATE OF FLORIDA I
COUNTY OF J---%l-
THIS SETTLEMENT AGREEMENT AND RELEASE BETWEEN COLLIER COUNTY
AND SURETY CONSTRUCTIONll';AS SWOR."J TO and subscribed bY/e~f..QJW
blore me on this (l day of~; I \ ,2011. J
~ Personally Known /
or
Produced Identification
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Type of Identification Produced
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Commissioned Name of Notary Public
(Please print, type or stamp)
My Commission expires: q ,1. ) I
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5/10/2011 Item 16.K.5.
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BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
By: FRED W. COYLE, CHAIRMAN
ATTEST:
DWIGHT E. BROCK,
CLERK OF COURTS
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By: Deputy Clerk
Approved as to form and
legal sufticiency:
Colleen M. Greene G 10 11
Assistant County Atto ey
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