HomeMy WebLinkAboutItem P07 P7
BOARD OF COUNTY COMMISSIONERS
COUNTY of MONROE Mayor James K.Scholl,District 3
The Florida Keys Mayor Pro Tern Michelle Lincoln,District 2
Craig Cates,District 1
David Rice,District 4
Holly Merrill Raschein,District 5
Board of County Commissioners Meeting
February 19, 2025
Agenda Item Number: P7
2023-3596
BULK ITEM: Yes DEPARTMENT: County Attorney
TIME APPROXIMATE: STAFF CONTACT: Christine Limbert-Barrows
No
AGENDA ITEM WORDING: Ratification of initiation of litigation against NGM Insurance
Company, the Performance Bond Surety on the Seaview Bridge Replacement Project and any other
indispensable parties.
ITEM BACKGROUND:
The county issued notice of termination against American Empire Builders, Inc. (AEB), the
construction contractor for the Seaview Bridge Project, on September 18, 2024.
NGM Insurance Company, the performance bond surety company, who is the financial guarantor of the
project, determines the method by which the project will be completed. Pursuant to the provisions of the
performance bond, this may be through:
• utilizing the existing contractor,
• using the surety's own agents or independent contractors,
• obtaining bids or proposals from qualified contractors on behalf of the County or
• making payment to the County under the bond so that the County may proceed with securing a new
contractor on its own.
The surety has approached contractors to obtain proposals to complete the work. On January 9th the
county provided notice to the surety that it had not proceeded with reasonable promptness and in
accordance with contract provisions had seven days to perform its obligations.
On January 14th Southern Road and Bridge submitted a cost proposal to the surety to complete the
work on Seaview Drive Bridge, however the surety has still not advised the county how it intends to
move forward to complete the work.
Accordingly, Monroe County notified the surety that it must provide a response as to how it intends to
proceed with respect to completion of the project by no later than 5 p.m. January 27, 2025.
In absence of a definitive response from the surety, the County will pursue all options to complete the
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project and seek all legal remedies against the surety, including filing a lawsuit. Staff will continue to
work along with outside counsel to resolve these issues.
In order to avoid further delays, outside counsel has been directed to prepare and file a complaint in this
matter. This agenda item seeks ratification of the initiation of litigation. At the time of drafting this
item, the Surety had not responded by the January 27th 5:00 PM deadline and is in breach of its
obligations under the performance bond.
PREVIOUS RELEVANT BOCC ACTION:
N/A
INSURANCE REQUIRED:
No
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION: Approval
DOCUMENTATION:
FINANCIAL IMPACT:
Cost of filing litigation.
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