Item C11County of Monroe
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BOARD OF COUNTY COMMISSIONERS
Mayor George Neugent, District 2
The Florida. Key
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Mayor Pro Tem David Rice, District 4
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Danny L. Kolhage, District 1
Heather Carruthers, District 3
Sylvia J. Murphy, District 5
County Commission Meeting
March 15, 2017
Agenda Item Number: C.11
Agenda Item Summary #2713
BULK ITEM: Yes DEPARTMENT: Project Management / Facilities
TIME APPROXIMATE: STAFF CONTACT: Tammy L. Sweeting (305) 292 -4526
NA
AGENDA ITEM WORDING: Settlement agreement between Monroe County and K2M for
$25,270.39 due to Monroe County for change orders on the Customs Project in Marathon, FL.
ITEM BACKGROUND: Monroe County received change order requests for the renovation of the
Marathon customs Facility at the Marathon Airport from the general contractor, Pedro Falcon
Electrical Contractors, seeking payment that Monroe County attributed in whole or in part to K2M
and its sub - consultant, TLC Engineering for Architecture. The County placed K2M on notice that
the County was seeking payment pursuant to an errors & omissions claim. Following negotiations
over additional work offsetting of offset the E &O claim, K2M has agreed to pay Monroe County
$25,270.39 for the partial cost of the change orders.
PREVIOUS RELEVANT BOCC ACTION: BOCC awarded contract to K2M for the design of the
Marathon Airport Customs Facility on 10/19/11 item #C -52.
CONTRACT /AGREEMENT CHANGES:
Agreement
STAFF RECOMMENDATION: Except agreement
DOCUMENTATION:
Claim Specific Release
re release and funds
FKMAP - Customs - K2M Errors & Omissions settlement ltr
FINANCIAL IMPACT:
Effective Date:
Expiration Date:
Total Dollar Value of Contract:
Total Cost to County:
Current Year Portion:
Budgeted:
Source of Funds:
CPI:
Indirect Costs:
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing:
Grant:
County Match:
Insurance Required:
Additional Details:
If yes, amount:
REVIEWED BY:
Doug Sposito
Completed
02/24/2017 3:53 PM
Pedro Mercado
Completed
02/24/2017 4:02 PM
Budget and Finance
Completed
02/28/2017 2:33 PM
Maria Slavik
Completed
02/28/2017 2:41 PM
Kathy Peters
Completed
02/28/2017 5:42 PM
Board of County Commissioners
Pending
03/15/2017 9:00 AM
CLAIM SPECIFIC RELEASE
WHEREAS K2M Design, Inc. ( "K2M ") entered into a contractual agreement with Monroe
County ( "Monroe ") relating to the design of improvements for the Customs Facilities at the Florida
Keys Marathon International Airport which remains in full force and effect; and
WHEREAS, Monroe has received change order requests from the general contractor, Pedro
Falcon Electrical Contractors, seeking payment therefore which Monroe has attributed in whole or
in part to K2M and its sub - consultant, TLC Engineering for Architecture ( "TLC "); and
WHEREAS, K2M is currently owed $12,609.38 in fees related to the airport project; and
WHEREAS, K2M, for itself and on behalf of TLC and MONROE wish to resolve specific
change order claims; it is hereby agreed that in consideration of the waiver of the $12,609.38 in fees
owed by MONROE to K2M and payment of the total sum of $25,270.39 by K2M to MONROE, the
receipt of which is acknowledged, MONROE does hereby release and forever discharge K2M, its
employees, agents, servants, predecessors, successors and insurers, and TLC, its employees, agents,
servants, predecessors, successors and insurers (collectively "K2M ")from claims, losses, damages,
actions and causes of action arising specifically from and relating specifically to known "defects,"
"deficiencies ", losses and damages of any nature resulting from or relating to the following change
orders for the Marathon Customs Airport Project:
1. Change Order 1
2. Change Order 3
3. Change Order 6
4. Change Order 7
5. Change Order 12a
This release applies only to patent claims, losses, damages, or conditions arising from or
related to the foregoing change orders. MONROE has not and does not release K2M for latent
conditions, if any, arising from or relating to said change orders. Notwithstanding the foregoing,
MONROE has made a reasonable analysis and evaluation of the conditions giving rise to each
change order request and as a material inducement for the resolution of this claim, MONROE
represents that it is not currently aware of any latent claims, losses, damages or conditions arising
from or relating to the above described change orders.
MONROE agrees that the resolution of the change order claims does not represent an
admission of fault or liability on the part of K2M which is expressly denied.
IN WITNESS WHEREOF, on behalf of Monroe County, I have hereunto set my hand and
seal this day of
(SEAL)
ATTEST: KEVIN MADOK, CLERK
, 2017.
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
I�
Clerk Mayor /Chairperson
tn_/ [I r r'n f_AC 4 ' - 1
I,ONF:561,684' ' AX 4 ;C.>C ' \ /dV`,`C iC
February 24, 2017
Sent Via E -Mail
Pedro Mercado, Esq.
Oramas & Associates P.A.
1111 12 Street, Suite 408
Key West, FL 33040
R< QN C1
CST N. MA 02114
Cv L Ez < <. -i NS, h. A,
A _ << N 1 IN M AC Us I S.
JON D. DERREVERE
idda,derreverelaw.com
RE: K2M Design, Inc. /Marathon Airport Customs
Our File No. 15894
Dear Pedro:
Thank you for providing your follow -up note on February 23, 2017 regarding the status
of the above - captioned matter. In accordance therewith, I have requested that K2M issue
payment to the County from my trust account. The check will be made payable to the Board of
County Commissioners of Monroe County. I will make sure that we include identifying
information relating to the project on the check itself. I will also make sure that the check is
delivered to you before March 15, 2017.
Pursuant to your note, you will hold the check pending Board approval of the agreement
and you will return same if for any reason the Board does not execute the release. Please do not
hesitate to call me if you need any additional input from me or K2M so that we can close this
matter out.
Very truly yours,
s /Jon D. Derrevere
JON D. DERREVERE
JDD /jeb
DER.REVERE HAWKES AITORNEYSAI LAW
2005 Vista Parkway, Suite 210
West Palm Beach, FL 33411
Phone: 561- 684 -3222
Fax: 561- 640 -3050
www.derreverelaw.com
June 22, 2016
Sent Via E -Mail
Doug Sposito
Monroe County Engineering
1100 Simonton Street, 2 -216
Key West, FL 33040
RE: K2M Design — Marathon Customs Project
Our File Number: 14974
Dear Mr. Sposito:
Privileged Settlement Communication
JON D. DERREVERE, P.A.
WINSLOW D. HAWKES III, P.A.
BRYAN W. BLACK, P.A.
BART COZAD, P.A.
MICHAEL B. STEVENS, P.A.
i Also admitted in Massachusetts
and the District of Columbia
SHIRLEY JEAN McEACHERN
PERI ROSE HUSTON - MILLER
THEODORE A. STEVENS
+PEGGY COZAD
ELIZABETH E. ZIMMARO
MARY E. GRECZ
WILLIAM W. VERTES
i i .JAYME S. SELLARDS
JERMAINE K. JACKSON
iRegistered Nurse, BSN
ii Also admitted in Michigan
r i Also admitted in Georgia,
Louisiana and Mississippi
As you know, I am general counsel for K2M Design. In that capacity I have been tasked
by Scott Maloney and K2M's professional liability carrier to evaluate and respond to the
county's claims relating to the Marathon Airport project.
Based upon input from K2M and TLC, K2M proposes the following as the basis for
resolving all outstanding issues:
1. As to change order 412a, K2M agrees that the county is entitled to receive $5,985.66.
2. As to change order 47, K2M agrees that the county is entitled to receive $22,381.75.
3. As to change order 46, K2M agrees that K2M /TLC are responsible for $3,152.36.
4. As to change order 43, because this is substantially a "first cost" expense, K2M
believes that the county should receive 15% of the total expenditure or $6,360.00 to
resolve this item;
5. As to change order 41, the addition of bullet resistant walls and doors on the
remaining side of the entry vestibule is a betterment requested by the county and
therefore not compensable.
Based upon the foregoing K2M agrees to $37,879.77 for additional expenses incurred by
the county. That figure should be reduced by $12,609.38 for additional services performed by
K2M /TLC on the project which remain due and outstanding for a net total of $25,270.39 which
will be paid in return for a release of those claims by the county as to K2M, TLC, their
employees and insurance carriers.
I look forward to discussing the foregoing with you at your convenience.
Very truly yours,
s/ Jon D. Derrevere
JON D. DERREVERE
JDD /jeb
cc: Scott Maloney