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HomeMy WebLinkAboutContract 32797 State of Texas § City of Secretary Contract No. Counties of Tarrant, § Denton and Wise AGREEMENT This AGREEMENT is between The City of Fort Worth (CITY), a Texas home-rule municipality located at 1000 Throckmorton St. Ft. Worth, TX 76102 and Wm. Rigg Co (BROKER), a Texas corporation located at 777 Main Street, Suite C-50, Fort Worth, TX 76102-5333, the CITY's Broker of Record for the Fire and Extended Coverage line of insurance and for the Boiler and Machinery line of insurance and consultant to CITY for other lines of insurance. The CITY and the BROKER agree to the following terms and conditions: 1.0 SCOPE OF SERVICES The BROKER shall perform the services as outlined and described in Attachment "A"—Services to Be Performed. 1.1 TERMS OF THIS AGREEMENT A. This AGREEMENT shall be in effect for a period of thirty six (36) months from October 1, 2005. CITY has the option to extend this AGREEMENT for two (2), Twelve- (12)month periods. 1.2 TERMINATION AND REMEDIES, CANCELLATION A. The CITY shall have the right to cancel for default all or any part of the undelivered portion of the AGREEMENT if BROKER breaches any of the terms hereof including warranties of BROKER or if the BROKER becomes insolvent or commits acts of bankruptcy. Such right of cancellation is in addition to and not in lieu of any other remedies,which the CITY may have in Law or equity. B. Right of Assurance. Whenever one party to this AGREEMENT in good faith has reason to question the other party's intent to perform, it may demand that the other party give written assurance of its intent to perform. In the event a demand is made, and no assurance is given within five (5) working days, the demanding party may treat this failure of assurance as an anticipatory repudiation of this AGREEMENT. C. A party may terminate the AGREEMENT if the other party r., , material breach, which substantially impairs the value of the co r it to the non-breaching party within five (5) working days of re ei notice from the other party. If more than five (5) working days arW� ,t� �� cure such default or breach, a reasonable time in excess of said peAb 'A 1 substituted. In the event such default or breach is not cured within the specified time the contract may be terminated effective five (5) working days after receipt of written notice by the party in default. D. The CITY reserves the right to cancel for convenience this AGREEMENT upon 30-calendar days written notice to the BROKER. Effective date of such notice shall begin three (3) days after date of posting with the United States Postal Service with said notice being sent to last known address of BROKER. E. The CITY in accordance with this provision may terminate in whole or in part the performance of work under this order. Termination of work hereunder shall be effected by the delivery to the BROKER of a "Notice of Termination," specifying the extent to which performance of work under the AGREEMENT is terminated and the date upon which such termination becomes effective. Such right of termination is in addition to and not in lieu of rights of the CITY with regard to cancellation of this AGREEMENT. F. Upon Termination for Cause, the CITY shall make no further payment to BROKER and the CITY retains the right to exercise any other legal or equitable remedies. 1.3 PAYMENTS TO THE BROKER CITY agrees to pay the BROKER as follows: A. Basic Services 1. For the performance of all services described in Section 2.0 and Attachment "A," the BROKER shall receive compensation on a fixed fee basis. Payment to the BROKER for the services shall not exceed the maximum AGREEMENT amount during the initial term. 2. No Payment shall be made except in conformance with Subsection B below. B. Method of Payment 1. Payments to BROKER for the performance of professional services shall be made in quarterly installments of$16,500.00, payable on the first day of each CITY fiscal quarter. 2. Payments for Additional Services or for extra work required and approved by the CITY, as described in Section 3.0 of this AGREEMENT, shall be made monthly as the work is performed and billed. 2 3. Payment of invoices is due no later than thirty (30) days after receipt of billing by CITY with appropriate documentation. If there are disputed items and/or amounts on any invoice, or items lacking appropriate documentation, the balance of such invoice, after deducting any such items, shall be paid in full, and the disputed items and amounts shall be presented to BROKER for resolution as soon as such disputed items have been determined by the CITY. If payment of the amounts due, or any portion thereof, is not made as prescribed above, interest on the unpaid balance the time said overdue payments are made shall accrue at the rate of ten percent (10%) per annum. Notwithstanding the above, nothing in this AGREEMENT shall be construed to charge interest greater than the amount allowed by Texas law. Payments due after a disputed amount is resolved shall be paid no later than thirty (30) days after such resolution. No interest shall be payable on retainage amounts. 4. Payments shall be delivered to: Wm. Rigg Co. 777 Main Street, Suite C-50 Fort Worth, TX 76102-5333 Attention: Scott Miller 5. The CITY may withhold, amend, or nullify any request for payment by the BROKER under conditions described below: 6. The CITY'S obligation is payable only and solely from funds appropriated and available for the purpose of this AGREEMENT. Lack of appropriated funds shall render this AGREEMENT null and void to the extent funds are not appropriated and available. 7. Should the City and Broker agree to extend this agreement for services past October 1St, 2008, the fee for such services shall be negotiated by both parties at that time. 1.4 GENERAL RESPONSIBILITIES OF THE BROKER A. BROKER is responsible for the professional quality, technical accuracy, timely completion, and coordination of all services. BROKER shall, without additional compensation, correct any material errors, omissions, or other deficiencies in BROKER's services upon written request by the CITY. B BROKER's obligations hereunder are in addition to the BROKER's other expressed or implied assurance under this AGREEMENT and in no way diminish any other rights that the CITY may have against the BROKER. 1.5 BROKER CERTIFICATION The BROKER certifies that the fees in this AGREEMENT have M , „�,independently without any consultation, communication, or agreement fo ' �' ��Y ,3 14S restricting competition, as to any matter relating to such fees with any other firm or with any competitor. 1.6 CLAIMS In the event that any claim, demand or other action is made or brought by any person, firm, corporation, or other entity against the BROKER or BROKER's subcontractors, arising out of performance of the AGREEMENT, the BROKER shall give written notice thereof to the City within five (5) working days after being notified of such claim, demand, suit or other action; the names and address of the person, firm, corporation or other entity making such claim or that instituted or threatened to institute any type of action or proceeding; and the name of any person against whom such claim is being made or threatened. Such written notice shall be delivered either personally or by certified mail, return receipt requested and shall be directly sent to: Sue Haupt Risk Manager City of Fort Worth 1000 Throckmorton Street Fort Worth, TX 76102 1.7 INDEPENDENT CONTRACTOR BROKER's relationship with the CITY under this AGREEMENT is that of an independent contractor. BROKER is to exercise its own discretion on the method and manner of performing its duties, and CITY will not exercise control over BROKER or its employees except insofar as this may be reasonably necessary to ensure performance and compliance with this AGREEMENT. The employees, methods, equipment and facilities used by BROKER shall at all time be under its exclusive direction and control. Nothing in this AGREEMENT shall be construed to designate BROKER, or any of its employees, as employees, agents,joint ventures or partners of the CITY. 1.8 LAWS, STATUTES AND OTHER GOVERNMENTAL REQUIREMENTS BROKER agrees to be in compliance with all applicable laws, statutes and other governmental provisions prevailing during the term of AGREEMENT. 1.9 ASSIGNMENT DELEGATION This AGREEMENT shall be binding upon the parties, their successors, and assignees; provided, however, that neither party shall assign its obligations hereunder without the prior written consent of the other. 1.10 NOTICES All notices under this AGREEMENT shall be by personal delivery or registered mail, and by facsimile transmission the same date as personal delivery or posting in the mail. Effective date of such notice shall be date of actual delivery or three (3) days after date of 4 posting with the United States Postal Service with the said notice being sent to last known address of recipient. BROKER: Scott Miller Wm. Rigg Co. 777 Main Street, Suite C-50 Fort Worth, TX 76102-5333 Phone: (817) 820-8100 FAX: (817) 870-0310 CITY: Sue Haupt Risk Manager City of Fort Worth 1000 Throckmorton St. Ft. Worth, TX 76102 Phone: 817.392.7761 FAX: 817.332.5874 1.11 SEVERABILITY OF PROVISIONS If any word, phrase, clause, sentence or provision of this AGREEMENT, or the application of same to any person or set of circumstances is for any reason held to be unconstitutional, invalid or unenforceable, that finding shall only affect the remaining portions of this AGREEMENT, this being the intent of the parties in entering into this transaction; and all provisions of the AGREEMENT are declared to be severable for this purpose. 1.12 CHOICE OF LAW AND VENUE This AGREEMENT shall be governed by the laws of the State of Texas without regard to the choice of law provisions thereof. Venue for this Agreement shall lie in Tarrant County, Texas. 1.13 CHANGES Any change(s) to this AGREEMENT shall be in the form of a written amendment mutually agreed upon and duly executed by both parties. 1.14 BROKER CONTACT The BROKER shall communicate all matters initially to the Risk Manager or his/her successor. The Risk Manager will act as contact point between the CITY and the BROKER with regard to all matters under this AGREEMENT. 1.15 RIGHTS TO PROPOSAL AND CONTRACTUAL MATERIAL 5 All reports, charts, schedules, or other appended documentation to any proposal, contracts and any responses, inquiries, correspondence, related material submitted by BROKER shall become property of the CITY upon receipt. 1.16 COPYRIGHTS AND RIGHTS OF DATA Where services under this AGREEMENT produce writings, sound recordings, pictorial reproduction, drawings, or other graphical representation and works of any similar nature the CITY has the right to use, duplicate, and disclose in whole or in part, in any manner, for any purpose whatsoever and have others do so. If the material is copyrightable, the sub-grantee may copyright such, and the CITY reserve a royalty free, non-exclusive, and irrevocable license to reproduce, publish and use such materials in whole or in part and to authorize others to do so. The CITY is not entitled to software programs used to produce documentation hereunder. 1.17 PERFORMANCE Failure by the CITY to insist in any one or more instances upon performance of any of the terms and conditions of this AGREEMENT shall not be construed as a waiver or relinquishment of the future performance of any terms and conditions, but the BROKER's obligation with respect to such performance shall continue in full force and effect. 1.18 NONDISCRIMINATION During the performance of this AGREEMENT, the BROKER, for itself in interest agrees as follows: A. Nondiscrimination: The BROKER, with regard to the work performed by BROKER under this AGREEMENT, shall not discriminate on any unlawful grounds in the selection and retention of any subcontractors, including those concerned in the procurement of materials and leases of equipment. The BROKER shall not participate wither directly or indirectly in the discrimination prohibited hereby. B. Solicitations for subcontracts, including procurement of materials and equipment: In all solicitations either by competitive bidding or negotiations made by the BROKER for work to be performed under a subcontract, including procurement of materials or leases or equipment, each potential subcontractor or supplier shall be notified by the BROKER of the BROKER's obligations under this AGREEMENT relative to nondiscrimination on the grounds of race, color or national origin. C. Sanctions for noncompliance: In the event of the BROKER's noncompliance with the nondiscrimination provisions of this AGREEMENT and after giving BROKER five (5) working days written notice, the CITY shall impose such AGREEMENT sanctions as it may determine to be appropriate, i hiding, hiiLZUjL_ limited to: r_ r� ci� %h 6 FT. W:/fin // 1. Withholding of payments to the BROKER under this AGREEMENT until the BROKER complies, and/or 2. Cancellation, termination, or suspension of this AGREEMENT, in whole or in part. 1.19 CITY'S RESPONSIBILITY The CITY's responsibilities include the following: A. Pay all costs of insurance policies directly to the insurance provider as negotiated with the insurance provider and provide evidence of such payment to BROKER. B. Provide full information as to the CITY'S requirements for the insurance covered by this AGREEMENT. C. Assist BROKER by placing at the BROKER's disposal available reports and other data relevant to the CITY's insurance needs. D. Examine all studies, reports, cost estimates and other documents presented by the BROKER and render, in writing, decisions pertaining thereto within a reasonable time so as not to unduly delay the provision of services by BROKER. E. Provide such legal and accounting services as the CITY may deem necessary for its internal administration. F. Give prompt written notice to the BROKER whenever the CITY observes or otherwise becomes aware of any defect in the services being provided by BROKER. G. Bear all necessary and appropriate costs incidental to compliance with the requirements of this Section. 2.0 SCOPE OF SERVICES BROKER will provide the services listed in Attachment "A," which is hereafter attached and hereby made a part of this AGREEMENT for all purposes. 3.0 ADDITIONAL SERVICES Should CITY require additional services not included in the Attachment "A"or the Scope of Basic Services as outlined in Section 2.0, CITY and BROKER will negotiate a fee for such services. BROKER agrees additional services shall only be provided if authorized or confirmed in writing by the CITY and the BROKER. 4.0 INSURANCE AND INDEMNITY REQUIREMENTS TYPE AMOUNT 7 1. Workers' Compensation Statutory Employers' Liability $500,000/$500,000/$500,000 2. Commercial General (public) Liability Insurance to include coverage for the following: a. Premises/Operations Combined Single Limit b. Independent contractors for Bodily Injury and C. Products/completed operations Property Damage of d. Personal Injury $1,000,000 per occurrence e. Contractual Liability with $2,000,000 Aggregate 3. Automobile Liability a. Owned/Leased vehicles Combined Single Limit for b. Non-Owned vehicles Bodily Injury and Property C. Hired vehicles Damage of$1,000,000 per occurrence 4. Insurance Agents and Brokers $3,000,000 per Claim Errors and Omissions Insurance $3,000,000 Annual Aggregate (Claims made form) The CITY shall be entitled, upon request and without expense, to receive copies of the policies and all endorsements thereto as they apply to the limits required by the CITY, and may make a reasonable request for deletion, revision, or modification of particular policy terms, conditions, limitations or exclusions (except where policy provisions are established by law or regulation binding upon either of the parties hereto or the underwriter of any such policies). Upon such request by the CITY, the BROKER shall exercise reasonable efforts to accomplish such changes in policy coverage and shall pay the cost thereof. BROKER agrees that with respect to the above-required insurance, all insurance contracts and Certificates(s) of Insurance will contain the following required provisions: • Name the CITY and its officers, employees, volunteers, and elected representatives as additional insured as respect to operations and activities of, or on behalf of, the named insured performed under contract with the CITY, with the exception of the Workers Compensation and Professional Liability policies; • The BROKER's insurance shall be deemed primary with respect to any insurance or self insurance carried by the City of Fort Worth for Liability arising out of operations under the contract with the City of Fort Worth; • Provide for an endorsement that the "other insurance" clause shall not apply to the City of Fort Worth where CITY is an additional insured shown on the policy; and • Workers' Compensation and Employers' Liability policy will provide a waiver of subrogation in favor of the CITY. BROKER shall notify the CITY in the event of any notice of cancellation, Ugk=wal material change in coverage and shall give such notices not less than thirty (30) 8 change, or ten (10) days notice for cancellation due to non-payment of premiums, which notice must be accompanied by a replacement Certificate of Insurance. All notices shall be given to the CITY at the following address: City of Fort Worth Attn: Sue Haupt Risk Management Division 1000 Throckmorton Street Fort Worth,TX 76102 If BROKER fails to maintain the aforementioned insurance, or fails to secure and maintain the aforementioned endorsements, the CITY may obtain such insurance, and deduct and retain the amount of the premiums for such insurance from any sums due under the agreement; however, procuring of said insurance by the CITY is an alternative to other remedies the CITY may have, and is not the exclusive remedy for failure of BROKER to maintain said insurance or secure such endorsement. In addition to any other remedies the CITY may have upon BROKER's failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required,the CITY shall have the right to order BROKER to stop work hereunder, and/or withhold any payments which become due, to BROKER hereunder until BROKER demonstrates compliance with the requirements hereof. Nothing herein contained shall be construed as limiting in any way the extent to which BROKER may be held responsible for payments of damages to persons or property resulting from BROKER's or its subcontractors' performance of the work covered under this agreement. BROKER covenants and agrees to FULLY INDEMNIFY and HOLD HARMLESS,the CITY and the elected officials , employees, officers, directors,volunteers and representatives of the CITY, individually or collectively, from and against any and all costs, claims, liens, damages, losses, expenses, fees, fines,penalties,proceedings, actions, demands, causes of action,liability and suits of any kind and nature, including but not limited to, personal or bodily injury or death and property damage, made upon the CITY, directly or indirectly arising out of, resulting from or related to BROKER's activities under this CONTRACT, including any acts or omissions of BROKER, any agent, officer, director, representative, employee, consultant or subcontractor of CONTRACTOR, and their representative, employee, consultant or subcontractor of CONTRACTOR, and their respective officers, agents, employees, directors and representatives while in the exercise or performance of the rights or duties under this CONTRACT, all without, however,waiving any governmental immunity available to the CITY under Texas Law and without waiving any defenses of the parties under Texas Law. IT IS FURTHER COVENANTED AND AGREED THAT SUCH INDEMNITY SHALL APPLY EVEN WHERE SUCH COSTS, CLAIMS, LIENS, DAMAGES, LOSSES, EXPENSES, FEES, FINES, PENALTIES, ACTIONS, DEMANDS, CAUSES OF ACTION, LIABILITY AND/OR SUITS ARISE IN ANY PART FROM THE NEGLIGENCE OF CITY,THE ELECTED OFFICIALS, EMPLOYEES, OFFICERS, DIRECTORS AND REPRESENTATIVES OF CITY, UNDER THIS CONTRACT. The provisions of this INDEMNITY are solely for the benefit of the parties hereto and not intended to create or grant any rights, contractual or otherwise, to any other person or entity. BROKER shall promptly advise the CITY in writing of any claim or demand against the CITY or BROKER known to BROKER related to or arising out of BROKER's activities under this CONTRACT and shall see to the 9 L investigation and defense of such claim or demand at BROKER's cost. The CITY shall have the right, at its option and at its own expense, to participate in such defense without relieving BROKER of any of its obligations under this paragraph. It is the EXPRESS INTENT of the parties to this contract, that the INDEMNITY provided for in this section, is an INDEMNITY extended by BROKER to INDEMNIFY, PROTECT and HOLD HARMLESS the CITY from the consequences of the CITY's OWN NEGLIGENCE, provided however, that the INDEMNITY provided for in this section SHALL APPLY only when the NEGLIGENT ACT of the CITY is a CONTRIBUTORY CAUSE of the resultant injury, death, or damage, and shall have no application when negligent act of the CITY is the sole cause of the resultant injury, death, or damage. BROKER further AGREES TO DEFEND,AT ITS OWN EXPENSE and ON BEHALF OF THE CITY AND IN THE NAME OF THE CITY, any claim or litigation brought against the CITY and its elected officials, employees, officers, directors,volunteers and representatives, in connection with any such injury, death, or damage for which this INDEMNITY shall apply, as set forth. 5.0 ENTIRETY OF AGREEMENT This AGREEMENT, together with any attachments,represents the entire agreement between the CITY and the BROKER and supersedes all prior negotiations, representations or agreements, either written or oral. Executed this day o 140 5 Wm. Rigg Co. By: Scott Miller Vice President Wm. Rigg Co. City of Fort Worth By: APPROV AS TO FORM AND LEGALITY: City Attorn Date ATTESTED BY f�A wj�— ma(41 ,�- y e rE r( NO M&C REQUIRED l l r "con % vm Vgv ATTACHMENT "A" Scope of Services I. PROCUREMENT AND PLACEMENT OF INSURANCE COVERAGE Ninety days prior to the December 1"renewal date,the BROKER shall collaborate with the City's Risk Manager to develop bid requests to secure property, casualty and boiler and machinery insurance for the CITY's insurable risks. BROKER shall make available to the CITY, all resources at its disposal to properly collect, organize and review all data placed into the bid request. BROKER shall market the CITY's account to qualified property and casualty and boiler and machinery insurers. Marketing shall include, but not limited to, the development of insurance specifications and underwriting criteria, and assistance in developing Requests For Quotes. In addition,the BROKER will canvass insurance markets,review policies, negotiate premiums on behalf of the CITY, and provide consultation and professional advice on proposed changes or enhancements to the program and ongoing advisory services for the duration of the contract concerning changes or enhancements to the program. BROKER shall represent the CITY in all phases of the renewal process. Direct negotiations with underwriters and the insurance company will take place with the direction of the CITY. Placement of any program of insurance will be conducted as a bid directly to the insurance market underwriters. BROKER shall review bids and assist the CITY in the selection thereof. It is clearly understood that any resulting product from the Broker of Record Contract cannot be accepted nor bound until approved by the CITY's Mayor and City Council. All procurement of insurance shall be conducted in accordance with the Texas Local Government Code and all applicable law. II. CONSULTANT SERVICES BROKER shall act in an advisory and consulting role to the CITY for the duration of the BROKER's contract to ensure that the insurance program accepted by the CITY continues to work smoothly and effectively, without lapse in coverage. BROKER may also be required to assist the CITY in evaluating proposals from potential contractors for various existing and/or newly developed programs. Consulting service shall include but is not limited to, identifying markets for specialty coverage's for vendors or contractors doing business with the CITY; reviewing contractual/lease provisions; assessing financial strength of insurance companies, risk retention and purchasing groups, captive insurers and other non-traditional insurance mechanisms. The BROKER will provide advice regarding loss settlement negotiation with primary or excess insurers if needed. When requested, the BROKER will attend meetings with the CITY staff or the City Council. Additionally, the BROKER will provide assistance to the Risk Manager in developing specifications for a Ri 001CIAL WON CITY SK-32EPUY Management Information System, respond to requests for information by the Risk Manager, review proposed legislation, provide claim review assistance as needed, answer loss control questions, and review actuarial reports. III. ACTUARIAL SERVICES BROKER arrange for and coordinate the collection of data for Actuarial Services on an every other year basis. Actuarial studies shall commence at a time period acceptable to the Risk Manager, and shall be provided to the CITY's Risk Manager no longer than 90 days from commencement. IV. CLAIMS AUDIT SERVICES BROKER shall arrange for and coordinate an annual Claims Audit of the CITY's General Liability and Self-Insured Auto Liability as an optional service. Final reports resulting from these audits shall be provided to the CITY'S Risk Manager by March 31 of each year. V. LOSS PREVENTION/SAFETY AUDIT SERVICES BROKER shall arrange for Loss Prevention and Safety Audit Services. These services shall include safety program evaluations, evaluation of high-risk activities, ergonomic studies and Job Safety/Hazard Analysis on specific worker activities. BROKER shall provide approximately 100 hours of these services, as requested by the CITY'S Risk Manager. r OFFICIAL W029 i