Created : May 10, 2014 at 10:42 PM
April 15, 2014
Status:
Open Agenda
Approve the Settlement Agreement between The School Board of Broward County, Florida; Ashbritt, Inc.; and Nations Roof, LLC.
This Agreement is the result of efforts to resolve differences and disputes between Ashbritt, Inc. (?Ashbritt?), Nations Roof, LLC (?Nations?) and The School Board of Broward County, Florida (the ?SBBC?) arising out of the payment for emergency, post-Hurricane Wilma (the ?Storm?) repair work and services performed in late 2005.
Hurricane Wilma struck South Florida on October 24, 2005 and caused significant damage to Broward County School District schools. Due to the extent and severity of the damage to the public infrastructure in Broward County, Governor Jeb Bush, through executive order, suspended certain public procurement policies including the requirement to obtain competitive bids for certain contracted work. Following the Storm, the District Superintendent directed the District's Facilities & Construction Management Department to begin the repair and rehabilitation process by engaging various contractors to repair and remediate the damage caused by the Storm to school portable classrooms at several school locations throughout Broward County.
The Storm damage to portables consisted of damage to roofs from severe hurricane force winds and water damage to portable interiors from subsequent rainfall. Accordingly, the District issued Purchase Order #2600018029T for the "purchase of emergency repair and related services necessitated by Hurricane Wilma at District locations." Such work was performed by Ashbritt, Nations, and C&B Services, Inc. ("C&B").
In January of 2006, the Office of the Chief Auditor ("OCA") commenced an internal audit engagement examining documentation of services performed by Ashbritt and C&B and the related invoices submitted for payment of their services. The OCA prepared an "Audit of the Ashbritt, Inc. and C&B Services Invoice for District Portable Repairs Related to Hurricane Wilma" which resulted in the OCA suggesting remediation and actions including, but not limited to, a request for reimbursement from Ashbritt for alleged overbilling.
On or about November 2, 2010, Ashbritt filed a Complaint against the SBBC styled Ashbritt, Inc. vs. The School Board of Broward County, Florida, in Broward County Case Number 10-43869 (18) seeking a declaration from the Court that it was entitled to all sums paid to it by the SBBC. The SBBC counterclaimed for reimbursement of per diem payments and added Nations as a Third Party Defendant.
Through settlement negotiations, Ashbritt and Nations have agreed to provide compensation to the SBBC in the total amount of $210,000 in full and complete settlement of the lawsuit (the ?Settlement Sum?).
This item resolves and settles the litigation between the SBBC, Ashbritt, and Nations. District staff, cadre counsel, and the Office of the General Counsel recommend approval of the Settlement Agreement as a fair, reasonable, and cost-effective resolution of the dispute between the parties.
There is a positive financial impact to the district in the amount of $210,000.
Requested Action
Approve the Settlement Agreement between The School Board of Broward County, Florida; Ashbritt, Inc.; and Nations Roof, LLC.
Summary
This Agreement is the result of efforts to resolve differences and disputes between Ashbritt, Inc. (?Ashbritt?), Nations Roof, LLC (?Nations?) and The School Board of Broward County, Florida (the ?SBBC?) arising out of the payment for emergency, post-Hurricane Wilma (the ?Storm?) repair work and services performed in late 2005.
Hurricane Wilma struck South Florida on October 24, 2005 and caused significant damage to Broward County School District schools. Due to the extent and severity of the damage to the public infrastructure in Broward County, Governor Jeb Bush, through executive order, suspended certain public procurement policies including the requirement to obtain competitive bids for certain contracted work. Following the Storm, the District Superintendent directed the District's Facilities & Construction Management Department to begin the repair and rehabilitation process by engaging various contractors to repair and remediate the damage caused by the Storm to school portable classrooms at several school locations throughout Broward County.
The Storm damage to portables consisted of damage to roofs from severe hurricane force winds and water damage to portable interiors from subsequent rainfall. Accordingly, the District issued Purchase Order #2600018029T for the "purchase of emergency repair and related services necessitated by Hurricane Wilma at District locations." Such work was performed by Ashbritt, Nations, and C&B Services, Inc. ("C&B").
In January of 2006, the Office of the Chief Auditor ("OCA") commenced an internal audit engagement examining documentation of services performed by Ashbritt and C&B and the related invoices submitted for payment of their services. The OCA prepared an "Audit of the Ashbritt, Inc. and C&B Services Invoice for District Portable Repairs Related to Hurricane Wilma" which resulted in the OCA suggesting remediation and actions including, but not limited to, a request for reimbursement from Ashbritt for alleged overbilling.
On or about November 2, 2010, Ashbritt filed a Complaint against the SBBC styled Ashbritt, Inc. vs. The School Board of Broward County, Florida, in Broward County Case Number 10-43869 (18) seeking a declaration from the Court that it was entitled to all sums paid to it by the SBBC. The SBBC counterclaimed for reimbursement of per diem payments and added Nations as a Third Party Defendant.
Through settlement negotiations, Ashbritt and Nations have agreed to provide compensation to the SBBC in the total amount of $210,000 in full and complete settlement of the lawsuit (the ?Settlement Sum?).
This item resolves and settles the litigation between the SBBC, Ashbritt, and Nations. District staff, cadre counsel, and the Office of the General Counsel recommend approval of the Settlement Agreement as a fair, reasonable, and cost-effective resolution of the dispute between the parties.
School Board Goals
| Goal 2: Continuous Improvement |
Financial Impact
There is a positive financial impact to the district in the amount of $210,000.
Source of Additional Information
Oscar E. Soto, Esq. Thomas C. Cooney, Esq. 754-321-2050
Associated File Attachments
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Settlement Agreement (Files) | |
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ExecutedCompleteCopy (Files) |