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0 <br />TO: Board of DATE: April 12, 1983 FILE: <br />County Commissioners <br />SUBJECT: 16th Street Traffic and <br />Pedestrian Improvements -- <br />Engineering Contract <br />Provisions for Professional <br />Liability Insurance <br />FROM: Gary.M. Brandenburg REFERENCES: <br />County Attorney <br />On February 22, 1983, the Public Works Department forwarded a copy <br />of the Certificate of Insurance supplied by Lloyd & Associates to <br />our office for review under the 16th Street improvements contract <br />(copy attached. The certificate provides professional liability <br />insurance in the amount of $500,000 per claim. The contract <br />between the County and Lloyd & Associates calls for public lia- <br />bility coverage of $3,000,000 per claim with a deductible, if any, <br />not exceeding $10,000 (copy of contract provision attached). <br />Lloyd & Associates have taken the position that the higher limit <br />called for under the contract is unreasonable in light of the total <br />fees involved. Mr. Lloyd has informed us that insurance at.the <br />higher limit could cost as much as $40,000 for the three-year <br />period of the contract. The Florida Department of Transportation <br />requires $250,000 of professional liability insurance for'jobs with <br />a fee range between $0 and $750,000 and $400,000 of professional <br />liability insurance for jobs with fees ranging from $750,000 to <br />$1.5 million. The City of Vero Beach requires $500,000 of profes- <br />sional liability insurance for major projects. <br />I would recommend that the County Commission consider modifying the <br />insurance clause of the contract between Indian River County and <br />Lloyd & Associates to provide a more reasonable liability limit in <br />light of the total fee involved. <br />MOTION WAS MADE by Commissioner Scurlock, <br />SECONDED by Commissioner Bowman, to modify the <br />insurance clause of the contract with Lloyd & <br />Associates as recommended by the County Attorney. <br />Mr. Lloyd informed the Board that he is well covered under <br />the state requirements. He felt the requirement for a higher <br />liability relates mainly to projects of a high risk nature. <br />Commissioner Wodtke asked if we selected the firm of Lloyd & <br />Associates on a competitive bid basis, and if so, whether the bid <br />contained a requirement for the $3,000,000 liability coverage. <br />51 o .3 PAGE 27. <br />APR 2 01993 <br />