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Agenda 06/23/2020 Item #16G 1 (Increase in PO for Carlton Fields, P.A. - Project 33484)06/23/2020 EXECUTIVE SUMMARY Recommendation to authorize an increase in the Purchase Order for Carlton Fields, P.A., in its construction law-related assistance involving the construction of the new terminal facility, runway apron and associated safety improvements at the Marco Island Executive Airport (the “MKY Project”) by West Construction, Inc. (Project No. 33484) OBJECTIVE: That the Board authorize an increase to the Purchase Order for outside counsel Carlton Fields, P.A. (the “Firm”), in accordance with the Board’s approved retainer agreement with the Firm, so that the Firm can provide continued construction law-related assistance involving the construction of the new terminal facility, runway apron and associated safety improvements on the MKY Project. CONSIDERATIONS: Collier County retained the law firm of Carlton Fields, P.A., to assist as co - counsel to provide specialized construction law-related assistance on the MKY Project on February 22, 2019. Despite County staff’s best efforts, the Contractor on the project, West Construction, Inc., (“West”), is well behind achieving Substantial Completion and has experienced a number of construction installation issues that have required significant review, including the utilization of outside experts with specialized skills in scheduling and materials installation knowledge. The performance issues and resulting delay by West have resulted in the accrual of Liquidated Damages (for its failure to complete the project by the Substantial Completion date) through May 15, 2020, in the amount of $1,512,675; and those damages will continue to accrue in the amount of $3,645 per day. Notably, a related separately awarded construction project at the MKY involving airport apron & safety improvements that are being performed by local contractor Quality Enterprises USA, Inc., and supervised by staff, is not experiencing any similar issues to date with delay or performance. As the MKY Project continues to move forward with estimated final completion in August 2020, the County is engaged in attempting to manage the project so that it is well -positioned as the Owner of the Project to recover any damages. Staff is requesting an increase in the Purchase Order for Carlton Fields, P.A., to provide for its continued representation on this matter to include filing suit, if necessary. It is difficult at this time to ascertain with particularity how much outside counsel fees may total in this case due to uncertain variables such as: (1) whether this matter can be settled pre-suit or whether it will require filing suit, (2) if filing suit is required: (a) the amount of discovery that will be necessary, (b) the approach of other counsel, (c) the duration of a trial, if applicable, and (3) other complicating factors. In the more than 15 months since the County retained Carlton Fields on this complex construction matter, the County has paid just under $90,000 in costs and fees, which includes the other consulting experts’ costs referenced above. The County will seek to recover its costs and attorneys’ fees as part of its claim for damages, as provided for in the agreement it entered into with West. At this time, Staff requests Board authority to increase the current Purchase Order by $100,000 and will report back to the Board incrementally if additional resources are required going forward. FISCAL IMPACT: Funds in the amount of $100,000 are budgeted and available in Airport Capital Fund (496), Marco Island Airport Terminal Project 33484. As indicated, the County anticipates recovery of these fees through liquidated damages that will be assessed against West Construction at the close of the project. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for Board approval. -SRT GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this 16.G.1 Packet Pg. 2378 06/23/2020 action. RECOMMENDATION: To authorize an increase to the Purchase Order for outside counsel Carlton Fields, P.A., in the amount of $100,000, in accordance with the County’s Board approved retainer agreement so the Firm can provide continued construction law-related assistance involving the construction of the new terminal facility, runway apron and associated safety improvements on the MKY Project. Prepared by: Justin Lobb, Executive Manager, Airport Authority 16.G.1 Packet Pg. 2379 06/23/2020 COLLIER COUNTY Board of County Commissioners Item Number: 16.G.1 Doc ID: 12407 Item Summary: Recommendation to authorize an increase in the Purchase Order for Carlton Fields, P.A., in its construction law-related assistance involving the construction of the new terminal facility, runway apron and associated safety improvements at the Marco Island Executive Airport (the “MKY Project”) by West Construction, Inc. (Project No. 33484) Meeting Date: 06/23/2020 Prepared by: Title: Operations Coordinator – Airport Authority Name: Debra Brueggeman 05/18/2020 10:32 AM Submitted by: Title: Division Director - Operations Support – Growth Management Department Name: Gene Shue 05/18/2020 10:32 AM Approved By: Review: Airport Authority Justin Lobb Additional Reviewer Completed 05/18/2020 10:33 AM Growth Management Department Judy Puig Level 1 Reviewer Completed 05/18/2020 11:20 AM Capital Project Planning, Impact Fees, and Program Management Rookmin Nauth Additional Reviewer Completed 05/18/2020 11:35 AM Growth Management Operations Support Christopher Johnson Additional Reviewer Completed 05/18/2020 12:25 PM Growth Management Department Gene Shue Additional Reviewer Completed 05/19/2020 12:04 PM Growth Management Department Debra Brueggeman Deputy Department Head Review Skipped 05/18/2020 10:31 AM Growth Management Department Thaddeus Cohen Department Head Review Completed 05/20/2020 4:18 PM County Attorney's Office Scott Teach Level 2 Attorney Review Completed 05/21/2020 9:42 AM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 05/21/2020 10:22 AM Office of Management and Budget Laura Zautcke Additional Reviewer Completed 05/21/2020 4:19 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 05/27/2020 11:49 AM Office of Management and Budget Susan Usher Additional Reviewer Completed 05/28/2020 12:05 AM County Manager's Office Geoffrey Willig Level 4 County Manager Review Completed 06/15/2020 11:32 AM Board of County Commissioners MaryJo Brock Meeting Pending 06/23/2020 9:00 AM 16.G.1 Packet Pg. 2380