Created : February 03, 2013 at 04:11 PM
March 20, 2012
Status:
Open Agenda
Approve the Final Acceptance of Sandpiper Elementary School HVAC Additions & Alterations, Project No. 3061-99-06, and approve the Settlement Agreement between The School Board of Broward County, Florida and Thermal Concepts, Inc.
On February 6, 2007, The School Board of Broward County, Florida ("SBBC") entered into an Agreement with Thermal Concepts, Inc. ("Thermal") for the addition and alteration of HVAC systems at Sandpiper Elementary School for Project No. 3061-99-06 (the "Project"). A dispute developed between the parties concerning whether the work performed by Thermal conformed to the Agreement, and whether such work was causing chronic malfunction of the HVAC system. As a result of this dispute, the SBBC, through its Facilities Department, withheld payment of Thermal's Final Retainage in the amount of $156,225.90 and sought repairs of the system.
On or about November 22, 2010, Thermal filed a lawsuit against SBBC in a case styled Thermal Concepts, Inc. v. The School Board of Broward County, Florida, Case No. 10-045492 (05), in the Circuit Court of Broward County, Florida (the "Lawsuit"), alleging in a two count complaint for breach of contract and violation of Local Government Prompt Payment Act. The School Board moved to dismiss the lawsuit and the parties engaged in discussions regarding repairs that Thermal would make to the HVAC system to assure its performance and monitoring that Thermal would undertake to confirm proper performance of the HVAC system.
Thermal proposes to dismiss the lawsuit with prejudice, waive its claim to attorney's fees and costs, accept one-half of the amount of accrued interest as of October 2010 on the Final Retainage, and comply in all respects with the terms of the Settlement Agreement. As part of the Settlement Agreement, Thermal shall provide the SBBC an additional, extended, labor-only warranty on the installed HVAC system and additional training of SBBC personnel on the operation and maintenance of the system. Upon approval of the settlement and in accordance with its terms, the District will pay Thermal its Final Retainage of $156,225.90, plus the agreed upon interest on the retainage of $11,345.90.
District staff, the General Counsel, and the School Board Cadre Counsel, F. Malcolm Cunningham, Jr., Esq., recommend approval of the Settlement Agreement as a fair and reasonable cost-effective resolution of the Lawsuit, which will eliminate protracted litigation and additional costs.
The financial impact of this item is $11,345.90 for interest on the retainage for this project. The source of these funds is Legal and Contingency.
Requested Action
Approve the Final Acceptance of Sandpiper Elementary School HVAC Additions & Alterations, Project No. 3061-99-06, and approve the Settlement Agreement between The School Board of Broward County, Florida, and Thermal Concepts, Inc.
Summary
On February 6, 2007, The School Board of Broward County, Florida ("SBBC") entered into an Agreement with Thermal Concepts, Inc. ("Thermal") for the addition and alteration of HVAC systems at Sandpiper Elementary School for Project No. 3061-99-06 (the "Project"). A dispute developed between the parties concerning whether the work performed by Thermal conformed to the Agreement, and whether such work was causing chronic malfunction of the HVAC system. As a result of this dispute, the SBBC, through its Facilities Department, withheld payment of Thermal's Final Retainage in the amount of $156,225.90 and sought repairs of the system.
On or about November 22, 2010, Thermal filed a lawsuit against SBBC in a case styled Thermal Concepts, Inc. v. The School Board of Broward County, Florida, Case No. 10-045492 (05), in the Circuit Court of Broward County, Florida (the "Lawsuit"), alleging in a two count complaint for breach of contract and violation of Local Government Prompt Payment Act. The School Board moved to dismiss the lawsuit and the parties engaged in discussions regarding repairs that Thermal would make to the HVAC system to assure its performance and monitoring that Thermal would undertake to confirm proper performance of the HVAC system.
Thermal proposes to dismiss the lawsuit with prejudice, waive its claim to attorney's fees and costs, accept one-half of the amount of accrued interest as of October 2010 on the Final Retainage, and comply in all respects with the terms of the Settlement Agreement. As part of the Settlement Agreement, Thermal shall provide the SBBC an additional, extended, labor-only warranty on the installed HVAC system and additional training of SBBC personnel on the operation and maintenance of the system. Upon approval of the settlement and in accordance with its terms, the District will pay Thermal its Final Retainage of $156,225.90, plus the agreed upon interest on the retainage of $11,345.90.
District staff, the General Counsel, and the School Board Cadre Counsel, F. Malcolm Cunningham, Jr., Esq., recommend approval of the Settlement Agreement as a fair and reasonable cost-effective resolution of the Lawsuit, which will eliminate protracted litigation and additional costs.
School Board Goals
| Goal Six: Parents, Business and Community Partnerships (2008-2011) |
Financial Impact
The financial impact of this item is $11,345.90 for interest on the retainage for this project. The source of these funds is Legal and Contingency.
Source of Additional Information
F. Malcolm Cunningham, Jr., Esq. Thomas C. Cooney, Esq. 754-321-2050 J. Paul Carland, II, Esq. 754-321-2050
Associated File Attachments
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Consent of Surety (Files) | |
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Certificate of Final Inspection (Files) | |
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Collaboration Form (Files) | |
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Policy 7005 (Files) | |
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Settlement Agreement (Files) | |
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ExecutedCompleteCopy (Files) |