Broward County Commission Regular Meeting
Director's Name: Leonard Vialpando
Department: Public Works and Environmental Services
Division: Administration
Information
Requested Action
title
MOTION TO APPROVE termination for convenience of the Contract Between Broward County and General Asphalt Co., LLC for Canal Structure S 27 Improvements, Project No. 107755, Bid/Contract No. PNC2130540C1 (“Contract”); authorize the Purchasing Director to execute any documents required to effectuate the termination, subject to review and approval as to legal sufficiency by the County Attorney’s Office; and authorize the Contract Administrator to take all administrative and budgetary actions necessary to close out the Contract. (Commission District 8)
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Why Action is Necessary
Pursuant to Article 15.4 of the Contract, Broward County may terminate the Contract for convenience upon written notice approved by the Commission.
What Action Accomplishes
Approves termination for convenience of Contract No. PNC2130540C1 with General Asphalt Co., LLC for the Canal Structure S-27 Improvements Project and authorizes the Contract Administrator to issue written notice of termination pursuant to Article 15.4 of the Contract.
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Previous Action Taken
Summary Explanation/Background
THE PUBLIC WORKS AND ENVIRONMENTAL SERVICES DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
The County awarded Contract No. PNC2130540C1 (Exhibit 1) to General Asphalt Co., LLC, in the amount of $915,530, for the Canal Structure S-27 Improvements Project No. 107755 (“Contract”). The Contract was executed by the Director of Purchasing in accordance with the Broward County Procurement Code.
The Canal Structure S-27 Improvements Project consists of demolition and replacement of the existing salinity control structure located at the confluence of the South Florida Water Management District Midriver Canal and Lateral B Canal (Exhibit 2), including construction of a new sheet pile wall, spillway, and water control structure.
The grant agreement associated with the project, Florida Department of Environmental Protection (“FDEP”) Agreement No. 22FRP126 (“FDEP Agreement”) (Exhibit 3) was executed on August 3, 2023. Under the FDEP Agreement, the County was eligible to receive a total reimbursement of $850,000 for the design, permitting, and construction of the S-27 Improvements Project. However, the FDEP Agreement required that all eligible work and associated reimbursements to be completed within the grant performance period ending June 30, 2026. County staff sought an extension of the grant performance period; however, FDEP denied the request based on the requirements of the American Rescue Plan Act. No reimbursements were received by the County pursuant to the FDEP Agreement, and therefore no repayments are owed to FDEP.
Based on updated construction scheduling analyses and project status evaluations, staff have determined that completing the remaining construction activities within the grant performance period is no longer feasible. As a result, continuing work under the Contract would likely result in costs that are not eligible for reimbursement under the FDEP Agreement. With the construction contract totaling $915,530 and the FDEP Agreement providing $850,000, further performance would create a significant non-reimbursable funding shortfall for which no other budgeted or agency funds exist.
Section 15.4 of the Contract expressly authorizes Broward County to terminate the Contract for convenience upon advance written notice. Under the Contract, the contractor is entitled to payment for work properly performed and eligible termination settlement costs incurred prior to termination. Staff will evaluate all submitted documentation and process final payments in accordance with the Contract terms.
Staff recommends terminating the contract for convenience and discontinuing construction efforts to avoid further non-eligible expenses.
Source of Additional Information
Dr. Jennifer Jurado, Chief Resilience Officer and Deputy Director, Public Works and Environmental Services Department, (954) 519-1464
Fiscal Impact
Fiscal Impact/Cost Summary
Pursuant to Section 15.4 of the Contract, the County is responsible for payment for work properly completed prior to termination and for eligible termination settlement costs supported by appropriate documentation. Staff is currently evaluating completed work, pending payment applications, consultant records, and closeout documentation to determine the final amount payable under the Contract.