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RESOLUTION APPROVING A SETTLEMENT AGREEMENT, IN THE AMOUNT OF $2,490.84, BETWEEN MIAMI-DADE COUNTY AND KRISTI HOUSE, INC. FOR A GRANTS-TO-GREEN NONPROFITS PROGRAM PROJECT NO. 11-G2G-KRHO AND AUTHORIZING THE COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE TO EXECUTE SAID AGREEMENT.

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WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum, a copy of which is incorporated herein by reference,

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board hereby approves the Settlement Agreement with Kristi House, Inc., in substantially the form attached hereto and made a part hereof; and further authorizes the County Mayor or the County Mayor�s designee to execute the agreement for and on behalf of Miami-Dade County.

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Date: To: Honorable Chairman Joe A. Martinez
and Members, Board of County Commissioners From: Carlos A. Gimenez
Mayor

Subject: Resolution Approving a Settlement Agreement, in the Amount of $2,490.84, between
Miami-Dade County and Kristi House, Inc. for Grants-to-Green Nonprofits Program
Project # 11-G2G-KRHO

STAFF RECOMMENDATION
Recommendation
It is recommended that the Board of County Commissioners (BCC) approve the attached resolution authorizing a Settlement Agreement between Miami-Dade County and Kristi House, Inc. (Kristi House) to reimburse Kristi House for expenses incurred due to an improper energy efficiency retrofit implementation involving ceiling/attic insulation, and further authorize the County Mayor or the County Mayor�s designee to execute the Settlement Agreement.

Scope
The Settlement Agreement is project specific to Kristi House, which is located at 1265 NW 12th Avenue, Miami, Florida 33136, in Commission District 3.

Fiscal Impact/Funding Source
The cost of minor clean-up and repairs totals $2,490.84 and results from improper project implementation by an independent contractor under the Grants-to-Green Nonprofits program.

The $2,490.84 will be paid by Miami-Dade County and funded from savings in the Office of Management and Budget�s FY 2011-2012 operating budget.

MANAGER'S BACKGROUND
Background
In May 2011, Miami-Dade County�s Office of Grants Coordination and Kristi House entered into a community-based organization (CBO) Agreement for the implementation of an energy retrofit project paid for under the Grants-to-Green Nonprofits (G2GN) program, funded through the County�s Energy Efficiency and Conservation Block Grant (EECBG).

The energy retrofit project involved two activities that were recommendations made by Florida Power and Light after a Business Energy Survey was conducted at the facility: 1) lighting retrofits (to 44 fixtures), and 2) installation of attic/ceiling insulation.

An official and mutually agreed upon Invitation to Quote was sent out by Kristi House to a pool of pre-approved contractors (aka �local energy service providers�) participating in the G2GN program. Representatives from Kristi House and the G2GN program accepted a proposal from Create Construction, Inc. requesting $13,500 for the implementation of both energy retrofit activities. The contractor performed a pre-site visit before submitting their final proposal which was in adherence to the G2GN programmatic requirements addressing all components such as project activities; itemized costs; Davis-Bacon applicability; waste stream plan; and FPL rebate qualification.

Work commenced and was completed on the project in June 2011. Subsequent to the completion, Kristi House began to experience serious malfunctioning of the air-conditioning system. After repeated visits from the HVAC maintenance provider it was determined that the source for the malfunction was the type of insulation used by the contractor.

After assessing the situation with various parties including the HVAC maintenance provider, building officials from the City of Miami, County staff from the Internal Services Department, the contractor and subcontractor (responsible for the installation), it was agreed upon that all of the insulation needed to be removed immediately. The contractor and subcontractor performed the removal and disposal of the insulation as requested.

Due to budgetary constraints within the G2GN program, seeking an alternative for the insulation was not an option and the energy retrofit activity of the insulation project was mutually cancelled by Kristi House and the County.

Based, in part, on the full cooperation and complete removal of the failed insulation by Create Construction and its subcontractor at their own expense, the County will not at this time seek claims for damages from the contractor. However, the contractor has been advised that they will not be paid for any services that involved the failed insulation activity. The primary cause for the insulation�s failure was the structure�s unique design and the presence of a plenum area which does not allow for blown-in insulation. The plenum area was not detected by the contractor and/or their subcontractor in spite of visual inspections made by all parties prior to the acceptance of the final proposal. The lighting retrofit activity was completed successfully and that portion of the energy efficiency retrofit project has been paid for with G2GN grant funds.

The County provides $440,000 in FY 2011-12 through the State Attorney�s Office to support functions at the Children and Special Needs Center associated with Kristi House. Because of this support and because of the cost that may be associated with further litigation, it was determined that rather than pursue legal action to exact damages from the contractor, the County would simply cover the $2,490.84.


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Deputy Mayor