Broward County Commission Regular Meeting


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AI-16542 51.       
Meeting Date: 04/22/2014  
Director's Name: Thomas Hutka
Department: Public Works Division: Construction Management

Information
Requested Action
MOTION TO APPROVE Takeover Agreement between Broward County and Liberty Mutual Insurance Company for completion of the Broward County Main Library Wind Mitigation project, Bid/Contract No. P0865207C1. (Commission District 7)

(Transferred to the Consent Agenda.)

ACTION: (T-10:24 AM) Approved with Yellow-Sheeted Additional Material, dated April 22, 2014, submitted at the request of Public Works Department.

VOTE: 8-0. Commissioner Jacobs was not present.
Why Action is Necessary
In accordance with the Broward County Procurement Code, Section 21.31.a.4, the Board of County Commissioners is required to approve all purchases exceeding $250,000.
What Action Accomplishes
Provides for Liberty Mutual Insurance Company’s takeover of the construction contract between Broward County Board of County Commissioners and RC Aluminum Industries, Inc.; and the completion of the Broward County Main Library Wind Mitigation project.
Is this Action Goal Related
 
Previous Action Taken
None
Summary Explanation/ Background
THE CONSTRUCTION MANAGEMENT DIVISION AND THE OFFICE OF THE COUNTY ATTORNEY RECOMMEND APPROVAL OF THE ABOVE MOTION.

On March 1, 2011 (Item No. 12), the Board of County Commissioners approved the award of a fixed-price construction contract to low bidder, RC Aluminum Industries, Inc. (RCAI), for the Broward County Main Library Wind Mitigation, Bid No. P0865207C1. RCAI failed to complete the project and on October 22, 2013, Liberty Mutual Insurance Company, (“Surety”), informed the County that it was acting as the attorney-in-fact for RCAI with full assigned authority.

On November 12, 2013 (Item No. 53) the construction contract with RCAI was terminated for cause by the Board of County Commissioners. The motion also authorized the Contract Administrator and the Office of the County Attorney to take all necessary administrative and legal action, including but not limited to pursuing the Performance and Payment Guaranty.

The Construction Management Division and the Office of the County Attorney entered into discussions with the Surety to negotiate a mutually agreeable plan to complete the project. The Takeover Agreement is the first step in a settlement between the Surety and the County pursuant to the terms of the performance bond. The Surety has retained a completion contractor, PRM Engineering and Contracting Corporation, to complete the unfinished portions of the project pursuant to the original construction contract terms, conditions and approved modifications. The County will coordinate directly with the Surety in all matters including, but not limited to, construction performance, progress payments, and change orders.

Signature pages will be forthcoming, prior to Commission meeting.

Sources of additional information: Ariadna Musarra, Director/County Architect Construction Management Division, 954-357-6473; Thomas J. Hutka, P.E., Director, Public Works Department, 954-357-6410.

Fiscal Impact
Fiscal Impact/Cost Summary:
The construction contract balance for the Broward County Main Library Wind Retrofit is encumbered in purchase order No. SC CM030111000000000003, in the amount of $147,925.47; with a retainage balance of $247,319.97; for a total amount of $395,245.44. The County is contributing 25% towards the cost of this project and FEMA will reimburse the County for the remaining 75%.
Attachments
Exhibit 1 - Takeover Agreement
Additional Material - Information


    

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