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David P.

Persson**
Andrew H. Cohen
Kelly M. Fernandez*
Maggie D. Mooney* Telephone (941) 306-4730
R. David Jackson* Facsimile (941) 306-4832
Regina A. Kardash* Email: mmooney@swflgovlaw.com
Lori M. Dorman∞
Andrew W. Mai
* Board Certified City, County and Local Government Law Reply to: Lakewood Ranch
** Of Counsel
∞ Licensed in Colorado

March 2, 2021

Via Email – mknowles@greeley-hansen.com


& Certified Mail, Return Receipt Requested

Mr. Michael Knowles


Greeley and Hansen, LLC
2601 Cattlemen Road, Suite 100
Sarasota, Florida 34232

Re: Demand for Indemnification


Our Client: Town of Longboat Key

Dear Mr. Knowles:

Our firm serves as the Town Attorney for the Town of Longboat Key (the “Town”). We are
writing on behalf of the Town regarding the Master Consulting Agreement, dated April 22, 2016 (the
“Agreement”). This letter serves as the Town’s demand for indemnification pursuant to the
Agreement.

Background

The Town hired Greeley and Hansen, LLC (“GH”) to perform a subaqueous wastewater force
main (wastewater pipeline) condition assessment. As set forth in the Request for Proposal (“RFP”),
the Town wanted to gain specific knowledge about the condition of the pipeline which is the sole
vehicle used to deliver wastewater to the mainland. The RFP specifically advised that the Town
_____________________________________________________________________________________

Lakewood Ranch Venice


6853 Energy Court 236 Pedro Street
Lakewood Ranch, Florida 34240 Venice, Florida 34285
Mr. Michael Knowles
Greeley and Hansen, LLC
March 2, 2021
Page 2

wanted to “understand the condition of the pipeline in whole.” The inspection was to include an
assessment of the pipeline’s expected remaining service life, the existence and extent of any internal
and external corrosion, pitting, and “any additional useful information in understanding the integrity
of the pipe.”

In entering the Agreement, GH affirmed it had “the experience, expertise, and resources” to
perform the professional services (the “Services”) described in the RFP. The Town reasonably relied
on GH’s representations and its promises to perform the Services professionally and conscientiously.

As part of the Services, GH, either directly or through its subconsultants, performed a survey,
conducted testing and carried out inspections of the pipeline (including a CCTV inspection). In
August 2017, GH delivered its assessment report to the Town. In that report, GH concluded that
the force main had a remaining service life of 20 to 25 years and recommended a subsequent
assessment and reinspection in 4 to 5 years.

Pursuant to the Agreement, GH was to have thoroughly evaluated the condition of the
pipeline. Unfortunately, in performing the Services, GH failed to detect a significant area of
corrosion in the pipeline approximately 400 feet inland. That corrosion was discovered in June 2020,
after that area of the pipeline broke and allowed more than 14 million gallons of untreated wastewater
to be leaked.

After months of costly investigation into the cause of this breakage and substantial
negotiations with the Florida Department of Environmental Protection, on February 24, 2021, the
Town entered into a consent order with FDEP. The requirements within that consent order include:
a civil penalty requiring the Town to perform an in-kind project valued at $281,073.00; mitigation
for the unauthorized impacts to mangroves from the wastewater spill including the purchase of offsite
credits; preparation and submittal to the FDEP of a detailed (short and long term) corrective action
plan relating to the existing wastewater pipeline; and the creation of an operation and maintenance
manual for wastewater collection and transmission. A copy of the fully executed Consent Order
effective February 24, 2021, is attached.

Had GH properly performed the Services, this area of corroded pipeline would have been
identified before it broke, the leak would have been prevented and the Town would not have been
fined by the FDEP.
Mr. Michael Knowles
Greeley and Hansen, LLC
March 2, 2021
Page 3

Indemnification

The Agreement provides as follows:

To the fullest extent permitted by law, the Consultant expressly agrees to indemnify, defend, and
hold harmless the Town, its officers, directors, agents, and employees (herein called the
“indemnitees”) from any claims, liabilities, damages, losses and costs, including, but not limited to,
reasonable attorney’s fees and court costs, such legal expenses to include costs incurred in establishing
the indemnification and other rights agreed to in this Section, to persons or property, to the extent
caused by the negligence, recklessness, or intentional wrongful misconduct of the Consultant, its sub
consultants or persons employed or utilized by them in the performance of the Agreement.

Id. at 8.1.

The Town is in the process of determining the damages it incurred as a result of GH’s negligent
performance of the Services. To date, these damages include the penalties set forth in the FDEP
consent order, environmental assessment fees, forensic engineering, consultant services, defense
costs, and other related expenses. Pursuant to the Agreement, we hereby respectfully demand that
GH fully indemnify the Town for all of the expenses it has incurred or will incur as a result of GH’s
negligence and the resultant force main break. We also request that GH identify all subcontractors
that it used in providing the services to the Town.

If you have not already done so, you should immediately notify your insurance carrier of this
demand for indemnification.

Should you have any questions regarding this demand, please have your counsel contact me.

Very truly yours,

Maggie D. Mooney
Town Attorney
Signed electronically

MDM/lmd
Att.: (1) Consent Order dated February 24, 2021, FDEP v. Town of Longboat Key, OCG File 20-1261
cc: Thomas Harmer, Town Manager
Town Commissioners, Town of Longboat Key, Florida

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