HomeMy WebLinkAboutItem VI (D) Consideration of Request for Geotechnical Engineering and Testing Services Contract Modification - Universal Engineering Sciences AGENDA 2-15-94
"CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" Item VI D
O� QCO a-- S.SCOTT VANDERGRIFT
' � COMMISSIONERS
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CITY OF OCOEE RUSTY JOHNSON
° 150 N.LAKESHORE DRIVE PAUL W.FOSTER
v21t. 0 OCOEE FLORIDA 34761-2258 VERN COMBS
(407)656-2322 JIM GLEASON
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Of G0e. QTY MANAGER
MEMORANDUM ELLIS SHAPIRO
DATE: February 10, 1994
TO: The Honorable Mayor and Board of City Commissioners
FROM: Montye E. Beamer, Director
Administrative Services
SUBJECT: Geotechnical Engineering and Testing Services Contract
Universal Engineering Sciences
On January 4, 1994 the City Commission authorized the execution of the Geotechnical
Engineering and Testing Services Contracts with the three top-ranked firms. Two were signed
with no modification to the advertised contract. Universal Engineering Sciences has, however,
requested that the deductible be changed to $75,000.00 plus an irrevocable letter of credit for
$25,000.00 to meet the current requirement of a $50,00.00 deductible for professional liability.
The request is attached.
Historically, the City had not specified what deductible was acceptable for Professional Liability.
After the bankruptcy of one contracted firm and the stark degradation in performance of another
firm, staff began presenting contracts to the Commission with a $50,000.00 deductible for
Professional Liability Insurance; in surveying other jurisdictions this appeared to be the standard.
It was listed in the agreement for soils work at the effluent disposal site in January, 1993 and
again in July 20, 1993 for the construction materials testing service. Its use is seen as a method
for measuring financial viability and experience rating.
Claims against professional liability are hardly ever readily apparent, i.e., occurrences are not
predictable. Universal is agreeing to maintain the $25,000.00 letter of credit so, if a claim were
made, an additional $25,000.00 would be provided. It should be noted also that their limit is
$2,000,000.00; the $1,000,000.00 limit requirement seemed sufficient based on the size and
scope of the possible work orders to be issued under this contract.
Staff recommends maintaining the $50,000.00 deductible. Each firm was asked during the oral
presentations if there were any problems with the advertised contract; none were reported by any
of the firms.
MEB/jbw
Attachments
WP60\DOCS\G&y ecH I.mmAIOFEB94\c:mez
636—
UNIVERSAL •Ocala Offices in:
_111 . •Orlanand
ENGINEERING SCIENCES •Gainesville
•Fort Myers
Consultants In:Geotechnical Engineering • •Merritt Island
Environmental Sciences• Construction Materials Testing •Daytona Beach
•West Palm Beach
February 1, 1994
City of Ocoee
150 N. Lakeshore Drive
Ocoee, Florida 34761
Attention: Ms. Monte Beamer
Reference: Insurance Requirements
Continuing Geotechnical Services Contract
Dear Ms. Beamer:
Universal Engineering Sciences. wishes to respectfully request the City of Ocoee allow Universal
Engineering Sciences to provide a letter of irrevocable credit from Barnett Bank in the amount of$25,000
to cover the difference between our professional liability deductible of$75,000 and the requirement of a
$50,000 deductible for the City of Ocoee. We currently maintain a $2,000,000 professional liability
insurance policy with a $75,000 deductible. We would have Barnett Bank issue to the City of Ocoee a
letter of irrevocable credit for$25,000 per occurrence in the event there are professional problems.
In our 30-year history of continuous operations as Universal Engineering Sciences,we have never used
our insurance policy for any purposes. However,we understand your need for security in this area and
would like you to allow us to provide this letter of irrevocable credit rather than have us spend the
additional money required for lower deductible limits. As evidenced by our financial statement, you will
see our firm is a financially sound firme capable of meeting our commitments.
If you should have any questions concerning this information feel free to call. We look forward to your
favorable reply.
Respectfully submitted,
Universal Engineering Sciences
R. Ke neth Derick, P.E.
Vice President
RKD/mw
3532 Maggie Blvd. • Orlando, FL 32811 • (407) 423-0504
3 . Comprehensive Automobile Liability - The CONSULTANT will
provide coverage for all owned and non-owned vehicles for
limits of not less than $500, 000 Combined Single Limit or
its equivalent.
4. Professional Liability - The CONSULTANT shall maintain
professional liability insurance in the amount of
$1, 000, 000 (deductible permitted not in excess of
$50, 000) , providing all sums which the CONSULTANT shall
be legally obligated to pay as damages for claims arising
out of the services performed by the CONSULTANT or any
person employed by him in conjunction with this Contract.
5. Proof of Insurance - The CONSULTANT will furnish
Certificates of Insurance to the CITY ENGINEER. The
certificates shall clearly indicate that the CONSULTANT
has obtained insurance of the type, amount and
classification required by these provisions. No material
change or cancellation of the insurance shall be
effective without a thirty (30) day prior written notice
to and approved by the CITY.
VII
TRUTH IN NEGOTIATION CERTIFICATE
The CONSULTANT hereby certifies, covenants and warrants that
wage rates and other factual unit costs supporting the compensation
provided for in this Contract are accurate, complete and current as
of the date of negotiation. It is further agreed that the contract
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