Agenda 09/29/2009 Item #16K 9
Agenda Item No. 16K9
September 29,2009
Page 1 of 3
EXECUTIVE SUMMARY
For the Board of County Commissioners to authorize the necessary budget amendments
and approve the filing of a civil action with the Circuit Court of the Twentieth Judicial
Circuit to recover in excess of three million dollars and defend against a nine million dollar
claim from John Carlo, Inc. relating to deficiencies in the work performance on Contract
05-3876, the Rattlesnake Hammock Road Six Lane Improvements for Project No. 60169.
Additionally, to authorize the County's continued defense and pursuit of the County's
counterclaim in the Immokalee Road Litigation, Project No. 66042.
OBJECTIVE: For the Board of County Commissioners to approve the filing of a civil action
with the Circuit Court of the Twentieth Judicial Circuit to recover damages for breach of contract
from John Carlo, Inc. relating to deficiencies in the work performance on Contract 05-3876, the
Rattlesnake Hammock Road Six Lane Improvements Project No. 60169.
CONSIDERATIONS: On October 18, 2005, Collier County and John Carlo, Inc., entered
into a contract for the construction of the Rattlesnake Hammock Road Six Lane Improvements
Project. The County is presently involved in a lawsuit John Carlo. Inc. v. Collier County. Case
No. 07-311-CA in which John Carlo has filed suit against the County for claims totaling nearly $4
million related to John Carlo's performance on Immokalee Road. They have also recently filed a
notice of claim for over $9 million related to John Carlo's construction of Rattlesnake Hammock
Road. Their total claims against the County for both projects total nearly $14 million dollars.
The County has defenses to their claims on Immokalee Road and in addition, has filed a
counterclaim. In the case of the Rattlesnake Hammock Project, the County has damages that
exceed $3 million dollars.
FISCAL IMPACT: It is estimated defense and prosecution costs in both cases will be
$950,000.00. In order to fund the litigation costs it will be necessary to process a budget
amendment in the amount of $650,000 to fund a portion of the cost required in this litigation.
Source of funds are Gas Tax and Impact Fee Reserves.
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated
with this Executive Summary.
LEGAL CONSIDERATIONS: The County Attorney's Office believes that this is the
appropriate time to file suit against John Carlo for deficiencies in work performance and forestall
an impending claim for $9,000,000.00 from John Carlo. On September 18, 2009, the parties
attempted mediation to no avail.
RECOMMENDA TION: That the Board of County Commissioners authorize the necessary
budget amendments and the filing of a civil action in the Circuit Court of the Twentieth Judicial
Circuit to recover damages for breach of contract against John Carlo, Inc. relating to deficiencies
in the work performance on Contract 05-3876, the Rattlesnake Hammock Road Six Lane
Improvements Project No. 60169. Additionally, to authorize the County's continued defense and
pursuit of the County's counterclaim in the Immokalee Road Litigation, Project No. 66042.
Agenda Item No. 16K9
September 29, 2009
Page 2 of 3
PREP ARED BY: Jacqueline Williams Hubbard, Litigation Section Chief
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Page 1 of 1
Agenda Item No. 16K9
September 29,2009
Page 3 of 3
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number: 16K9
Item Summary: For the Board of County Commissioners to authorize the necessary budget amendments and
approve the filing of a civil action with the Circuit Court of the Twentieth Judicial Circuit to
recover in excess of three million dollars and defend against a nine million dollar claim from
John Carlo, Inc. relating to deficiencies in the work performance on Contract 05-3876, the
Rattlesnake Hammock Road Six Lane Improvements for Project No. 60169. Additionally, to
authorize the Countys continued defense and pursuit of the Countys counterclaim in the
Immokalee Road Litigation, Project No. 66042.
Meeting Date: 9/29/2009 9:00:00 AM
Prepared By
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Jacqueline W. Hubbard Assistant County Attorney Date
County Attorney County Attorney Office 9(23/20099:13:02 AM
Approved By
Norm E. Feder, AICP Transportation Division Administrator Date
Transportation Services Transportation Services Admin. 9(23/20099:44 AM
Approved By
Najeh Ahmad Director Date
Transportation Services Transportation Engineering &
Construction Management 9/23(2009 11 :04 AM
Approved By
Jacqueline W. Hubbard Assistant County Attorney Date
County Attorney County Attorney Office 9/23(2009 11: 05 AM
Approved By
John A. Yonkosky Director of the Office of Management Date
County Manager's Office Office of Management & Budget 9(23(2009 11 :23 AM
Approved By
Leo E. Ochs, Jr. Deputy County Manager Date
Board of County
Commissioners County Manager's Office 9/23/2009 11 :38 AM
Approved By
Jeff Klatzkow County Attorney Date
County Attorney County Attorney Office 9/23(200911:39 AM
file://C:\Agendatest\export\135-September 29,2009\16. CONSENT AGENDA\16K. COUN... 9/23/2009