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Agenda 11/09/2010 Item #16K 7 i"'''''- Agenda Item '"1 November. 2010 ~i',.'t1'.' !~,;..., r;: .~:~~t ~ti; , )1~;Ill!, jt\,' '~ EXECUTIVE SUMMARY'1'1'~i "'~ ","W" . ;)i,~~:~ . ,_ ,.-f~' :..J I ........... 1II approve a SeCdeaent Ap-eement with Iusituform T~~ '.' ("ITI") ""'--1 to contract number 03-3455, "Trenchless Sewer System Rehab'< ., ,,'~,;,jj C.n.,.tL..Serriea," in the amount of 5563,277 to complete repain reIatecI .~i";!'!. of sewer tines in North N.ples (Area 1-3 and Area 1-4), and to .....orize die ,;,_ seeute the Settlement Agreement. . : To obtain Board approval, as the Ex-Officio Governing Board ,of the Collier County Water-Sewer District, to approve a Settlement Agreement with 111 in the amount of $563,277 to compIeCe .-epairs to work previousIf performed on sewer lines located in North Naples (Areas 1-3 and 1-4). Once completed, this work will structmally restore and enhance the performance ,of ~,~s wastewater collection system, and thereby eJimillSltP. Inflow and InfiltrttioD(JaI)\O,.,.tary sewers and manholes. :',' ':,:' t . '.,j ~."""'" . , ": At the time this contract was awarded to 111, many pipelines in the N..,.."::" Ate8Were antiquated, deteriorating and in need of repair. The Public Utilities l'>iviIloI:;~ experienced' favorable results using the trenchless technology method of sewer pipeline ,npair, which involves reHning rather than conventional excavation and repair techniques. 111 is a worldwide provider of Cured-In-Phice Pipe rehabilitation services and was contracted to rehabilitate the sewer lines in Naples Park. , a Cured-In-PIace Pipe system involves inserting a resin coated lining into the existing " RiPe' ad pulling it through while steaIn or hot water creates a securely fiUing seal. The , '.are.then cut and restored usiDg robotic devices and the completed work is. :videotaped , and afterwards to confirm the work was successfully completed. ' , As a result of an incident on or about March 27, 2007, involving the introductiop qfal,~. gaseous odor in a structUIe near lOSth Avenue in North Naples, the County stoppOd rrrji aDd ~.lbat it provide a prevention and contingency plan to address any ibtute' re"'or.,. and odors into buildings closely situated near the work performed'.bJ lTJ.' buildings around that area include but, are not limited to: day care centers, schoo~ ' aDd oollllDlMalbuiJdinp- Because the County did not believe 111 provided adequato that appmpriate measures were in place to prevent or eliminate the in1roductionof.... " odors iDto such structures, it terminat.,d the Contract and cancelled Work Order ## CCWW~ (Area 1-3) on April 13, 2007 and Work Order. CCWW-12 (Area 1-4) on May 24, 2007. At. '~~_tbose Work Orders were cancelled, staffrequested that 111: (1) submit a post ~ . , , " oftbose lines as required by the Contract (to confirm the successful comp~ ot. dKough the notice of termination), and (2) submit final invoices for payment.' m WIIS , for the work it performed under the Contract that could be verified by pOst . and for which proper invoices were submitted. , for almost a ,two year period, Staff requested that III provide both pre aDd post ,., ,~,.,,}~~ that it could review the remaining work performed associated with,the repeirs ",ADas 1-3 and 1-4, which is the subject of this Settlement Agreement. As~ Agenda Item No. 161<7 November 9, 2010, p.~ of l' ~ining sections of pipeline, 111 had only provided invoices and no post videotape. BecaU;e '~[~could not con.fian dIat the work had been successfully performed, Ill's invoices for tWe sectiGas of'I'iPe~ were not submitted and processed for payment illtimately, Staff ~ to videotape tIat subject pipelines to confirm whether the work for which m was ~g reimbursemeDt lid been successfully performed and to determine whether any deficiencies were present that IIIeided corrective action. The post tape inspection revealed that m performed work in the uncompensated remainil!g portions of Areas 1-3 and 1-4 but that numerous repairs were necessary to meet the CODtIact requirements. On September 27, 2010, ITI and the County met to review the remainn,g post tapes jointly. As a result of that nating, a punchJist was developed of the remAini1lJ work and repairs that needed to be completed in order to close the project and provide 'PafII1eDt to m. Because of the limited nature of the remaining repairs, the concerns regantiDg the gaslodor incident that precipitated the original cancellation for the con1ract is no longer believed to be an issue. The Settlement Agreement memorializes Staff and m's agreement (subject to Board approval) to successfully repair the work according to the Contract, provide a credit to the County for its cost to post videotape ($23,969.00) which led to the discovery of the required repairs, and a net payment of$563,277 to In upon confirmation of the successful CIOmpletion of the ren1Aini"8 work. . FISCAL IMP AQ': Funds to reimburse IT! for the work performed as required by the Settlement Agreement is in the FYII Capital Budget approved by the Board of County Commissioners on ~ber 23, 2010. Funds are budgeted in the Wastewater Department Project 73050 for County Sewer Capital Projects under Fund 414. . The negotiations and preparation of the Settlement Agreement were conducted by tile County Attorney's Office and it is recommended that the Board of County Commigioners approve the Settlement Agreement The payment under the Settlement Agreemeut will be for work actually performed in accordance with the underlying contract and for which the County bas received beQefit. This item is legally sufficient for Board action- SRT. GRQ~AGDJENl: IMP AQJ: This project meets current Growth Management Plan standards to ensure the adequacy and availability of viable public sanitary sewers and,ltUIOm"" ~: That the Board of County Commissioners, as the Ex~ Governing Board of the Collier County Water-Sewer District, approves the Sett1~ Agreement with m in the amount of $563,277 for the completion of repairs pertaining to the rebabili1IdimI of sewer lines in North Naples (Area 1-3 and Area 1-4), and authorize its Chairman to ~'d,dCllllelltAgreement. ;,: 'J' t" -1,1 j: ,:~; ~'~; Scott R. Teach, Deputy County Attorney SettJement Agreement ,""f1: Agenda Item No. 16K7 November 9,2010 Page 3 of 19 . COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: Item Summary: 16K7 Recommendation to approve a Settlement Agreement with Insituform Technology Inc. (ITI) pertaining to contract number 03-3455. Trenchless Sewer System Rehabilitation Contracting Services, in the amount of $563,277 to complete repairs related to ITls rehabilitation of sewer lines in North Naples (Area 1-3 and Area 1-4), and to authorize the Chairman to execute the Settlement Agreement 11/9120109:00:00 AM Meeting Date: Prepared By Scott R. Teach Deputy County Attorney Date County Attorney County Attorney 10/29/20108:49:25 AM Approved By Scott R. Teach Deputy County Attorney Date County Attorney County Attorney 10/2912010 11 :33 AM Approved By Tom Chmelik Project Manager, Senior Date Public Utilities Division Public Utilities Engineering 10129/20104:50 PM . Approved By Steve Carnell Director - Purchasing/General Services Date Administrative Services Division Purchasing & General Services 10130/20108:56 AM Approved By Thomas Wides Director - Operations Support - PUD Date Public Utilities Division Utilities Finance Operations 1111120103:47 PM Approved By James W. Delony Public Utilities Division Administrator Date Public Utilities Division Public Utilities Division 1112120108:23 AM Approved By Jeff Klatzkow County Attorney Date 11121201010:55 AM Approved By OMB Coordinator Date County Manager's Office . Approved By Susan Usher Office of Management & Budget 11/2120101:31 PM Management/Budget Analyst, Senior Date Office of Management & Budget Agenda Item No. 16K7 November 9,2010 Page 4 of 19 Office of Management & Budget 11/2120104:30 PM Approved By Leo E. Ochs, Jr. County Managers Office County Manager Date County Managers Office 11/2120105:21 PM . . . . . . Agenda Item No. 16K7 November 9,2010 Page 5 of 19 MUTUAL SETTLEMENT AGREEMENT AND RELEASE This Mutual Settlement Agreement and Release (the "Agreement") is made and entered into this 9th day of November, 2010 by and between The Board of County Commissioners of Collier County, Florida (the "County") and Insituform Technologies, Inc. ("ITI"), a Delaware corporation (each is a "Party" or collectively the "Parties"). WITNESSETH: THAT WHEREAS, ITI was the prime contractor on Contract # 03-3455, "Trenchless Sewer System Rehabilitation Contract Services" (the "Contract"), for a cured-in-place sewer rehabilitation project for the County which involved lining of the main sewer lines at various locations in the County under Work Orders CC'WW-05 for Area 1-3 and CCVWV-12 for Area 1-4 (the 'Work Orders"); and WHEREAS, the County unilaterally terminated ITl's Contract for convenience and thereby the Work Orders by letters dated April 13, 2007 and May 30, 2007 (the "Termination"); and WHEREAS I the Parties disagreed on the amount of money the County owed to ITI for the work completed through the date of Termination; with ITI having submitted two (2) invoices - Invoice #14128902-2 dated 9/10/2008 for Area 1-3 in the amount of $284,136.00 and Invoice #14128903-1 dated 9/18/2008 for Area 1-4 in the amount of $303,110.00 (the "Invoices"), together representing $587,246.00 in outstanding payments due ITI (the "Outstanding Amount). Copies of the Invoices are attached hereto as Exhibit "1 ;" and WHEREAS, the County incurred costs of $23,969.00 to have the various line segments cleaned and post videotaped by another company to determine the actual work completed by ITI referenced in the Invoices. A copy of the April 20, 2010, invoice, line 5, for the post videotape of the sewer lines is attached hereto as Exhibit "2" (the "CleanfTV Costs"); and WHEREAS, ITI has agreed to give the County a $23,969.00 credit for the CleanfTV Costs such that ITI and the County agree to a final settlement amount of $563,277.00 (the "Settlement Amount"); and WHEREAS, the Parties, through its representatives, have met on two occasions, most recently on September 27, 2010 to discuss the issues and attempt to reach a mutually agreeable resolution; and WHEREAS, the Parties desire to memorialize the agreements reached at the September 27, 2010 meeting in this document and set forth each Party's actions and responsibilities; and 1 Agenda Item No. 16K7 November 9,2010 Page 6 of 19 WHEREAS, in order to avoid the risks and costs associated with protracted . litigation. the Parties hereto have agreed to compromise and settle, in accordance with this Agreement, all controversies and claims currently pending between them and any and all claims related in any manner to the Contract which could have been asserted between the Parties whatsoever. NOW THEREFORE, in consideration of the mutual promises and covenants set forth below, the Parties agree as follows: 1. Duties of the County:. The County agrees to be responsible for the following items: a. That immediately upon approval of this Agreement by the Board at its November 9,2010 Meeting, County staff shall issue a Purchase Order ("PO") to ITI in the amount of $563,277.00 for the Settlement Amount owed to ITI; and b. The County will waive any Contractual obligations for ITI to perform any further lateral grouting on the Contract; and c. That upon completion of the ITI duties set forth below, the County will make full and final payment to ITI of the Settlement Amount within thirty (30) days of ITI submitting post tape videos that verify ITI's . satisfactory completion of all duties. 2. Duties of ITI. ITI agrees to be responsible for the following items: a. ITI will perform, either with its own forces or with one or more subcontractors, all of the repair items on the two County Evaluation Spreadsheets dated 9/2712010 attached hereto collectively as Exhibit "3." Such repairs shall begin upon (1) the execution by both Parties of this Agreement; (2) the issuance by the County Staff of the PO referenced in paragraph 1 (b) above, and (3) ITI providing a hard schedule, safety plans and a Maintenance of Traffic ("MOT") before the issuance of a Notice to Proceed from the County. b. ITI shall complete the punch list repairs identified in Exhibit "3" as quickly as possible in full compliance with the Contract requirements, including providing current Certificates of Insurance; c. Upon completion of the punch list repairs, ITI shall submit post video of all of the repairs to verify the completion of the punchlist repair work; and d. ITI shall provide the County with alt documentation ITI has regarding . the lateral grouting that had been completed prior to the Termination. 2 . . . Agenda Item No. 16K7 November 9,2010 Page 7 of 19 e. ITI shall comply with all County Transportation Right of Way, Public Utility, and National Association of Sewer Service Companies ("NASCQ") standards. f. ITI shall provide the County with forty-eight (48) hours advance notice to be present as to those repairs that will be accomplished that may not be clearly detectable by review of the post videotape that will be provided by ITI after completion of the punchlist repairs. 3. Release of Claims bv ITI and County. Subject to the full performance of the obligations hereunder, ITI and County, for their shareholders, directors, officers, agents, affiliates, predecessors, successors and assigns, hereby release and forever discharge each other from any and every claim, debt, demand, cause of action, obligation, damage and liability of any nature whatsoever, whether or not now known, suspected or claimed, and whether sounding in contract or in tort, which either Party, jointly or severally, ever had, now has or claims to have against the other Party, by reason of or related in any manner to the Contract. 4. Costs and Attornevs' Fees. The Parties shall bear their own respective costs and attorneys' fees in connection with the preparation and execution of this Agreement. 5. No Admiss;ons. It is understood and agreed that the releases and covenants contained herein are in settlement and compromise of disputed claims, and the consideration paid or accepted hereunder, as well as the terms of this Agreement, including the characterization of the Payments are not to be construed as admissions of liability by any Party hereto, by whom such liability is expressly denied. 6. Bindina Effect This Agreement and the releases and other covenants contained herein shall be binding upon, and shall inure to the benefit of, the Parties, their predecessors, successors, heirs, assigns and other persons or entities released under the terms of this Agreement. 7. Intea ratio n: Amendment; Further Documents. This Agreement constitutes a single, integrated written contract expressing the entire agreement of the Parties, and it may be amended only by an agreement in writing signed by the Parties hereto. This Agreement contains the entire agreement between the Parties and no conditions precedent or subsequent exist which are not contained herein. 8. Severabilitv. This Agreement shall be considered severable, such that if any provision or part of it is ever held invalid or unenforceable under any law or ruling, that provision or part shall remain in full force and effect to the extent allowed by law, and all other provisions or parts of this Agreement shall remain in full force and effect. 3 Agenda Item No. 16K7 November 9, 2010 Page 8 of 19 9. Representations Reaardina Authority. Each individual executing this Agreement on behalf of a corporation, a limited liability company, organization or entity represents and warrants that he or she has full authority to enter into and execute this Agreement on behalf of such corporation, limited liability company, organization or entity and to thereby bind said corporation, limited liability company, organization or entity. .' 10. Execution in Counterparts. This Agreement may be executed in counterparts and by facsimile signatures, and all taken together shall become effective and binding upon the Parties at such time as the signatories hereto have affixed their signatures. All counterparts so executed shall constitute one agreement. binding upon all Parties, notwithstanding that all the Parties are not signatories to the original or the same counterpart. 11. Construction. Each Party has cooperated in drafting of this Agreement. If this Agreement is in any way interpreted or construed, it shall not be construed against any Party. 12. Jurisdiction. All questions relative to the execution, validity, interpretation and performance of this Agreement shall be governed by the laws of the State of Florida. IN WITNESS WHEREOF, the undersigned Parties have executed this Mutual Settlement Agreement and Release having read and fully understanding the provisions . hereof. Attest: DWIGHT E. BROCK, Clerk BOARD OF COUNTY COMMISSIONERS COLLLER COUNTY, FLORIDA By: By: FRED W. COYLE, Chairman Approved as to form and legal sufficiency: Scott R. Teach Deputy County Attorney . 4 . . . First Witness Type/print witness name Second Witness Type/print witness name Approved as to form and legal sufficiency: By: Ted O'Donoghue, General Counsel North American Rehab Agenda Item No. 16K7 November 9,2010 Page 9 of 19 INSITUFORM TECHNOLOGIES, INC., By: James Newkirk, General Manager, East Region 5 fI~k lOh41. JfVI.~FL32203 P.kaDe ~5102 'It Fa ~.31J1 8215 228 2:f 21 651 c~_ CoII8r~ ~R.= ,; i f r ; i ~ ;., , !:II _ --- .....oi ..I.A....... JmM.e, for these I 1IaIE!tSe,_u__~~ PAt-.-- " IineB. hO'MMIf l1Q P-Ofit1;piis ware doHe'due to ~~OtitcontmL ''''&WIf. nat ~geb'~or pcJEittape ~Be1his not~ ' i ; ~ ~ i f ; i t , ~ " ~-. ii , ~ Pa,ment -. , IaitJtfol'B1 T~ me. P.o. Bo:t281J74 A&:nta,GA ~1374 EXHIBIT I "1" Ago~~a ~tj~010 invoice No. '4~20f 19 - Dale P.O. I/. Prqect No.: UnJt PrIGt 32.DC 1.00 530.00 315.00 5.00 SUbTCW TOTAL I~ u. Qtj INVOICE ~ . ~ 45OIJ01'3S26 14128902 Ti 282.-0.00 226..00 '11,180..00 .e..e1.UO 3,.286.00 . $284 136.00 =~ I . . I . . . - ~ Insitufonn 1eduzologies; Inc. r Custom.,. CoIf_ County 6027 ShlI1ey Street Naples. Fl... 34109 ~fl'a~ No. 16K7 November 9,2010 Page 11 of 19 PO Box 41629 Jacksonville, FL 32203 Phone 90+262-5802 Fax Q04-?'Q?-~lQR ztm rE8 -S,N'VblbE" Invoice No. P. U. E. D. 14128903-1 J Date P.O.fI. : Project No_: 111812001 4500016565 14128903 Qty DescrlptJon Unit Price TOTAL WIO fI. CCWW-12 6608 8- Diameter (0 - 5 ft deep) 32.00 211,456.00 229 Reinstatement of Service Laterals 1.00 229.00 17 Bypass 8- Sewer Set-up 530.00 9,010.00 17 Bypass 4- Pump 315.00 5,355,00 15412 Warranty TV Survey (Pre TV & aean) 5.00 n,06O.00 - SubTotal $303,110.00 Payment '" Insituform Techaoloaies, IDe. P.O. Box 281374 TOTAL $303110.00 AtlaBta, GA 30384-1374 IOffice Use Only ORIGINAL . : ~;: (11 . . ~. . eLL 10:1 -- - -- _. - - --- ~_....:-, . fpo :50~O 1 O~.35~ {MO ~Ti>\Y>.-~~ -J 3116 t (.-J~_~ I COLLIER COUNTYL.~--- - - ___.J 3301 E. TMIN11 TRIltI\. tMPLES Agenda Item No. 16K7 November 9, 2010 Pa e 12 of 19 . -.......... Caqa. REMIT TO: 1853 REUABLE PARKY/AV CHCAGO. L ,60086 PHONE: 317 -293.{Yl78 FL 3...12 ~-eo '61:5 JOB ~ cou.lP COUNTY ; , 3301 E. T.vuM1 TRAIL i { ...- ... FL 34U 2 I LOCATIDII. ~. n. t:AEU TVPE: D< ~D CREW PMJDUCT P'HME: I IN8TALL 8" t11U.ER t)(...pl~ PIlAR i I REBlSTATE MD GIIOUT L,ATEIIN..S ' ' "IJ Il!E ,. l*flU. .-,tt'L..L.ER E~~~~1 E eEl V ED Pl'- ... tllElNSTATIt AND CROUT u- C'I..EM i. TU MSIN 1...;,3 "" ",. ~.. APQ 30 201 ! ! FINANCE OEPT, i I , , ; ~ c' ,-'r::'f\. r-:t' At,~u-'. ,. 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