BOCA RATON

301 E AST P IN E S T R E E T FORT LAUDERDALE

S U IT E 1400 FORT MYERS
P O ST O F F IC E B O X 3068 (32802-3068)
GAINESVILLE
O R L AN D O , F LO R ID A 32801
JACKSONVILLE
T E L 407-843-8880

F A X 407-244-5690 KEY WEST

gray-robinson.com LAKELAND
MELBOURNE
MIAMI
407-843-8880
NAPLES
JOSEPH.FITOS@GRAY-ROBINSON.COM
ORLANDO
TALLAHASSEE
March 30, 2021
TAMPA
WASHINGTON, DC
WEST PALM BEACH

VIA EMAIL TO: mmooney@swflgovlaw.com

AND CERTIFIED MAIL RETURN RECEIPT REQUESTED
Maggie D. Mooney, Esq.
Town Attorney
Town of Longboat Key
Persson, Cohen & Mooney, P.A.
6853 Energy Court
Lakewood Ranch, FL 34240-8523

Re: Subaqueous Wastewater Forcemain - Greeley and Hansen LLC Response to

Town of Longboat Key March 2, 2021 Demand for Indemnity

Dear Ms. Mooney,

This firm has the honor of representing Greeley and Hansen LLC (“GHLLC”). We have been
provided with your March 2, 2021 Demand for Indemnification (the “Demand”). Please accept this letter
as GHLLC’s response to same.

As you are aware, on November 13, 2015, GHLLC and Town of Longboat Key (the “Town”)
entered into the Contract for RFP #15-017 Subaqueous Wastewater Forcemain Condition Assessment (the
“Agreement”) wherein GHLLC agreed to perform a multi-phase assessment of a forty year old, 20-inch
ductile iron force main that carries the Town’s wastewater to a treatment facility located in Manatee County
(the “Force Main”). Pursuant to the parties’ Agreement, GHLLC’s work was limited to assessing the then-
current condition of the Force Main, making recommendations for rehabilitative efforts, if necessary, and
analyzing the remaining service life of the system.

GHLLC utilized a variety of methods to perform its investigation of the Force Main. A portion of
the investigation was performed by GHLLC’s subconsultants, including Pure Technologies, Ltd. (“PTL”),
who utilized its patented Smartball technology to detect potential leaks, gas pockets and abnormalities in
the system, as well as determine overall pipe thickness.

GHLLC’s findings and limited recommendations regarding the Force Main were summarized in
the Subaqueous Wastewater Force Main Condition Assessment dated August 14, 2017 (the “Assessment”).
The results of testing performed by GHLLC’s subconsultants, including PTL, were likewise included with
the Assessment.

In September 2020, GHLLC was contacted by Town personnel who advised that the Force Main
had recently experienced a leak. At that time, the Town described the leak as a “slow leak over time” and
not a catastrophic or wholesale failure. The Town also indicated that it had retained a consultant to analyze
GRAYROBINSON
PROFESSIONAL ASSOCIATION

Maggie D. Mooney
March 30, 2021
Page 2

the issue and would share the results of any testing with GHLLC once available. GHLLC offered to
exchange information with the Town and further engage its original consultants if necessary. However, it
does not appear that the Town requested any additional information from or participated in further
discussions with GHLLC after September 2020. Likewise, it does not appear the Town shared the results
of any forensic testing or studies that may have been performed during this time period with GHLLC.

GHLLC was recently made aware of a news article published in The Longboat Observer (the
“Observer”) dated March 8, 2021 and available online to the general public at: www.yourobserver.com (the
“Article”). GHLLC first learned of the Article when the Observer “tagged” GHLLC on the Observer’s
Facebook post which contained a link to the Article.

The Article, titled “Longboat Key seeks funding from engineering firm after June 2020 sewage
break,” begins by stating:

The Town of Longboat Key is seeking hundreds of thousands of dollars’ worth of compensation
from an environmental engineering firm that inspected its sewage pipe about three years before the
June 2020 break.1

The Article also references and directly quotes from portions of the Demand. The entire Demand
can be accessed and downloaded simply by clicking a link contained in the Article.2 GHLLC had no
knowledge of the Demand before reading the Article.

GHLLC has no record of ever receiving the Demand which is now essentially one month old. In
fat, until it was blindsided by the Article, GHLLC was not aware of any additional issues concerning the
Force Main other than what was discussed during its initial call with the Town in September 2020.
Moreover, prior to reviewing the Article, GHLLC was not aware that the Town was attempting to hold
GHLLC responsible for the Force Main leak nor was GHLLC aware that the Town was seeking
compensation for repair and remediation efforts that were undertaken by the Town without GHLLC’s
knowledge or involvement.

As you know, Section 8 of the parties’ Agreement requires that proper notice of all claims arising
out of the Agreement be in writing and delivered to GHLLC via email and/or Certified Mail Return Receipt
Requested. GHLLC has researched its electronic database and can find no record of any GHLLC personnel
or representatives receiving the Demand electronically. Likewise, GHLLC can find no record of ever
receiving the Demand by Certified Mail Return Receipt Requested. If the Town is in possession of
documents evidencing proper delivery of the Demand, GHLLC demands the Town produce these
documents immediately. However, until that time and based on the information presently in hand, it is
GHLLC’s position that the Town has failed to comply with its requirements for notice pursuant to the terms
of the parties’ Agreement.

Even more concerning is the fact that the Town elected to address these issues through the media
instead of communicating with GHLLC directly. The Article – a classic example of hit-piece journalism
fraught with inaccuracies and misrepresentations – not only publicly accuses GHLLC of professional
malpractice, but also falsely states that GHLLC was willfully ignoring the problem. Neither are accurate.

1
A copy of the Article as it appears online is attached as Exhibit “1.”
2
A copy of the Demand as it appears online is attached as Exhibit “2.”
GRAYROBINSON
PROFESSIONAL ASSOCIATION

Maggie D. Mooney
March 30, 2021
Page 3

Quite frankly, it is shocking that the Town found it appropriate to publicly comment on its own
unilateral investigations and conclusions regarding GHLLC’s ultimate responsibility without allowing
GHLLC the opportunity to investigate the Town’s claim, provide insight into the problem, propose
alternative solutions, or publicly defend its position. This type of conduct, particularly in a public forum,
is unprofessional, irresponsible, underhanded and even actionable under Florida law.

With respect to the merits of the Town’s claim, it is worth pointing out that the Demand fails to
identify with any real specificity the root cause of the alleged failure of the Force Main or even the exact
location of the failure. The Article makes a single, cryptic reference to a buried log that may have
contributed to the leak, but again, this is new information to GHLLC and without the opportunity to
investigate, cannot be verified.

The Demand also vaguely references documents and communications with FDEP, but fails to
attach any documents outlining or memorializing any findings concerning root cause or liability. The
Article likewise references forensic investigations conducted by the Town, but the results of those
investigations have not been shared with GHLLC. Finally, the Demand fails to identify any specific
requirement or obligation, contractual or otherwise, that GHLLC failed to adhere to and that may have
caused or contributed to the Town’s purported damages. Without more, any meaningful or detailed
response by GHLLC is virtually impossible at this time.

With that said, GHLLC has reviewed the Assessment along with its project file and has determined
that its analysis, findings and recommendations contained therein were thorough and accurate. At this time,
GHLLC has not identified any error, omission or breach of any obligation that would have caused or
contributed to the failure of the Force Main. If the Town has additional information or documents that may
support its position, we would strongly encourage the Town to share this information with GHLLC and
allow GHLLC to provide a detailed response.

Accordingly, GHLLC rejects the Town’s Demand at this time. As stated above, GHLLC cannot
identify any act or omission by GHLLC that would trigger any obligation to indemnify the Town for its
alleged damages pursuant to the terms of the parties’ Agreement. Moreover, the Town’s lack of information
and back-up with respect to its claim or GHLLC’s liability is further support for GHLLC’s decision to
reject the Demand. Of course, if additional information is forthcoming, GHLLC may reassess its position,
but without more, GHLLC cannot find any basis at this time to accept the Town’s Demand.

Pursuant to Chapter 119, Florida Statutes, GHLLC also demands the Town produce its entire
project file related to the Force Main as well as all records associated with or arising from the Town’s claim,
or the parties’ Agreement that may be subject to Florida’s broad public records laws including, but not
limited to, all correspondence, email communications, memoranda, meeting minutes, notes, contracts,
reports, invoices, damage calculations, as well as any documents referencing any and all remedial efforts
taken by the Town since discovering the failure of the Force Main. You may arrange for any documents
responsive to GHLLC’s request to be delivered to our office with a copy to Cynthia Kalk, Executive Vice
President and Chief Operating Officer at Greeley and Hansen LLC (ckalk@greeley-hansen.com). Please
communicate with us directly moving forward.
GRAYROBINSON
PROFESSIONAL ASSOCIATION

Maggie D. Mooney
March 30, 2021
Page 4

Should you wish to discuss this matter in greater detail, we encourage you to contact us. While
GHLLC is willing to provide a reasonable level of cooperation and exchange information, GHLLC is
concerned that the Town’s conduct up until this point suggests the Town has no interest in anything other
than attempting to wrongfully damage GHLLC’s reputation in the court of public opinion. Please be
advised that the Town’s actions may ultimately be actionable under Florida law and GHLLC is prepared to
take immediate steps to further protect its rights which may include formal claims.

Please provide your response to this letter along with all responsive documents requested herein no
later than Monday, March 5, 2021.

Sincerely,

Joseph Fitos

JRF/psm
Attachments
cc: Tom Harmer, Town Manager (tharmer@longboatkey.org)
Isaac Brownman, Public Works Director (ibrownman@longboatkey.org)
Longboat Key Purchasing Manager (purchasing@longboatkey.org)
Paul Vogel, President, Greeley and Hansen LLC (via email only)
Cynthia Kalk, EVP and COO, Greeley and Hansen LLC (via email only)
Trevor Arnold, Esq., GrayRobinson, PA (via email only)
Lauren Martin, CNA (via email only)