HomeMy WebLinkAboutContract 56602 City Secretary Contract No. 56602
FoRTWORTH.
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VENDOR SERVICES AGREEMENT
This Vendor Services Agreement("Agreement")is made and entered into by and between the City
of Fort Worth("City"),a Texas home rule municipal corporation,acting by and through its duly authorized
Assistant City Manager, and Duff& Phelps, a Kroll Business operating as Kroll, LLC ("Vendor"), and
acting by and through its duly authorized representative, each individually referred to as a "party" and
collectively referred to as the "parties."
1. Scope of Services. Insurance property appraisal services("Services"),which are set forth
in more detail in Exhibit"A,"attached hereto and incorporated herein for all purposes.
2. Term. This Agreement begins on the date signed by the Assistant City Manager below
("Effective Date") and shall expire a year after the Effective Date ("Expiration Date"), unless terminated
earlier in accordance with this Agreement("Initial Term"). City will have the option,in its sole discretion,
to renew this Agreement under the same terms and conditions,for up to six(1)one-year renewal option(s)
(each a"Renewal Term").
3. Compensation. City will pay Vendor in accordance with the provisions of this Agreement,
including Exhibit `B," which is attached hereto and incorporated herein for all purposes. Total
compensation under this Agreement will not exceed ninety-nine thousand five hundred Dollars
($99,500.00) in the Initial Term. Vendor will not perform any additional services or bill for expenses
incurred for City not specified by this Agreement unless City requests and approves in writing the additional
costs for such services. City will not be liable for any additional expenses of Vendor not specified by this
Agreement unless City first approves such expenses in writing.
4. Termination.
4.1. Written Notice. City or Vendor may terminate this Agreement at any time and for
any reason by providing the other party with 30 days' written notice of termination.
4.2 Non-appropriation of Funds. In the event no funds or insufficient funds are
appropriated by City in any fiscal period for any payments due hereunder,City will notify Vendor
of such occurrence and this Agreement will terminate on the last day of the fiscal period for which
appropriations were received without penalty or expense to City of any kind whatsoever,except as
to the portions of the payments herein agreed upon for which funds have been appropriated.
4.3 Duties and Obligations of the Parties. In the event that this Agreement is
terminated prior to the Expiration Date, City will pay Vendor for services actually rendered up to
the effective date of termination and Vendor will continue to provide City with services requested
by City and in accordance with this Agreement up to the effective date of termination. Upon
termination of this Agreement for any reason, Vendor will provide City with copies of all
completed deliverables prepared under this Agreement. In the event Vendor has received access to
Vendor Services Agreement OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
City Information or data as a requirement to perform services hereunder, Vendor will return all
City provided data to City in a machine readable format or other format deemed acceptable to City.
Notwithstanding anything to the contrary herein,Vendor may retain City material and information
to the extent required by applicable laws, regulatory requirements or professional recordkeeping
policies and nothing shall require the alteration or destruction of back-up media made in the
ordinary course of business, provided that any City Information retained per this exception shall
continue to be treated as confidential pursuant to the terms hereof.
5. Disclosure of Conflicts and Confidential Information.
5.1 Disclosure of Conflicts.Vendor hereby warrants to City that Vendor has made full
disclosure in writing of any existing or potential conflicts of interest related to Vendor's services
under this Agreement.In the event that any conflicts of interest arise after the Effective Date of this
Agreement,Vendor hereby agrees immediately to make full disclosure to City in writing.However,
City acknowledges that Vendor is a global firm and this Agreement does not restrict Vendor from
providing services in its normal course of business to other clients; provided that Vendor will
comply with its confidentiality obligations herein, does not violate any third-party agreement as a
result of the Services, and will maintain commercially appropriate safeguards between client
information and third-party information.
5.2 Confidential Information.Vendor,for itself and its officers,agents and employees,
agrees that it will treat all information provided to it by City ("City Information") as confidential
and will not disclose any such information to a third party without the prior written approval of
City. This excludes information (i) available to the public, (ii) already in Vendor' possession, or
(iii)received from a party having no confidentiality obligation to City.
5.3 Public Information Act. City is a government entity under the laws of the State of
Texas and all documents held or maintained by City are subject to disclosure under the Texas Public
Information Act.In the event there is a request for information marked Confidential or Proprietary,
City will promptly notify Vendor.It will be the responsibility of Vendor to submit reasons objecting
to disclosure. A determination on whether such reasons are sufficient will not be decided by City,
but by the Office of the Attorney General of the State of Texas or by a court of competent
jurisdiction. Whether or not Vendor is successful, City will ensure that any legally required
disclosure is narrowly tailored to preserve as much confidentiality as possible while still complying
with the disclosure requirement.
5.4 Unauthorized Access.Vendor must store and maintain City Information in a secure
manner and with commercially reasonable technical, physical, administrative, and organizational
measures designed to protect City Information from unauthorized users to access, modify, delete
or otherwise corrupt City Information in any way. Vendor must notify City immediately if the
security or integrity of any City Information has been compromised or is believed to have been
compromised, in which event,Vendor will, in good faith,use all commercially reasonable efforts
to cooperate with City in identifying what information has been accessed by unauthorized means
and will fully cooperate with City to protect such City Information from further unauthorized
disclosure.
6. Rieht to Audit. Vendor agrees that City will,until the expiration of three (3)years after
final payment under this Agreement,or the final conclusion of any audit commenced during the said three
years,have access to and the right to examine at reasonable times any directly pertinent books,documents,
papers and records,including,but not limited to,all electronic records,of Vendor retained in conformance
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with generally accepted accounting principles and procedures involving transactions relating to this
Agreement at no additional cost to City. Vendor agrees that City will have access during normal working
hours to all necessary Vendor facilities and will be provided adequate and appropriate work space in order
to conduct audits in compliance with the provisions of this section at City's expense, and subject to
obligations of confidentiality. City will give Vendor reasonable advance notice of intended audits. For the
avoidance of doubt, records available for review shall exclude any records pertaining to Vendor's other
clients and other confidential and proprietary records not associated with the Services and nothing set forth
in this Agreement shall require Vendor to grant City any network or physical access to Vendor's facilities,
systems or infrastructure.
7. Independent Contractor. It is expressly understood and agreed that Vendor will operate
as an independent contractor as to all rights and privileges and work performed under this Agreement, and
not as agent, representative or employee of City. Subject to and in accordance with the conditions and
provisions of this Agreement, Vendor will have the exclusive right to control the details of its operations
and activities and be solely responsible for the acts and omissions of its officers, agents, servants,
employees, Vendors, and subcontractors. Vendor acknowledges that the doctrine of respondeat superior
will not apply as between City,its officers,agents,servants and employees,and Vendor,its officers,agents,
employees, servants, contractors, and subcontractors. Vendor further agrees that nothing herein will be
construed as the creation of a partnership or joint enterprise between City and Vendor. It is further
understood that City will in no way be considered a Co-employer or a Joint employer of Vendor or any
officers, agents, servants, employees, contractors, or subcontractors. Neither Vendor, nor any officers,
agents, servants, employees, contractors, or subcontractors of Vendor will be entitled to any employment
benefits from City.Vendor will be responsible and liable for any and all payment and reporting of taxes on
behalf of itself,and any of its officers,agents, servants,employees,contractors,or contractors.
8. Liability and Indemnification.
8.1 LIABILITY- VENDOR WILL BE LIABLE AND RESPONSIBLE FOR ANY
AND ALL TANGIBLE PROPERTY LOSS, TANGIBLE PROPERTY DAMAGE AND/OR
PERSONAL INJURY,INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND
OR CHARACTER, WHETHER REAL OR ASSERTED, TO THE EXTENT CAUSED BY THE
NEGLIGENT ACT(S) OR OMISSION(S), MALFEASANCE OR INTENTIONAL
MISCONDUCT OF VENDOR, ITS OFFICERS, AGENTS, SERVANTS, EMPLOYEES,
CONTRACTORS, OR SUBCONTRACTORS WHILE PERFORMING THE SERVICES
ON SITE AT CITY PROPERTIES.
8.2 GENERAL INDEMNIFICATION- VENDOR HEREBY COVENANTS AND
AGREES TO INDEMNIFY, HOLD HARMLESS AND DEFEND CITY, ITS OFFICERS,
AGENTS, SERVANTS AND EMPLOYEES, FROM AND AGAINST ANY AND ALL THIRD
PARTY CLAIMS OR LAWSUITS OF ANY KIND OR CHARACTER, FOR EITHER
TANGIBLE PROPERTY DAMAGE OR LOSS AND/OR PERSONAL INJURY,INCLUDING
DEATH, TO ANY AND ALL PERSONS, TO THE EXTENT CAUSED BY THE NEGLIGENT
ACTS OR OMISSIONS OR MALFEASANCE OF VENDOR, ITS OFFICERS, AGENTS,
SERVANTS, EMPLOYEES, CONTRACTORS, OR SUBCONTRACTORS WHILE
PERFORMING THE SERVICES ON SITE AT CITY PROPERTIES.
8.3 INTELLECTUAL PROPERTYINDEMNIFICATION—Reserved..
9. Assignment and Subcontracting.
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9.1 Assignment. Vendor will not assign or subcontract any of its duties, obligations
or rights under this Agreement without the prior written consent of City (provided, however, that
Vendor may assign this Agreement in the event of a merger, acquisition, or sale of all or
substantially all of its assets or to a Vendor affiliate in connection with an internal tax restructuring
or similar internal reorganization).If City grants consent to an assignment,the assignee will execute
a written agreement with City and Vendor under which the assignee agrees to be bound by the
duties and obligations of Vendor under this Agreement.Vendor will be liable for all obligations of
Vendor under this Agreement prior to the effective date of the assignment.
9.2 Subcontract. If City grants consent to a subcontract,the subcontractor will execute
a written agreement with Vendor referencing this Agreement under which subcontractor agrees to
be bound by the duties and obligations of Vendor under this Agreement as such duties and
obligations may apply. Vendor must provide City with a fully executed copy of any such
subcontract.
10. Insurance. Vendor must provide City with certificate(s) of insurance documenting
policies of the following types and minimum coverage limits that are to be in effect prior to commencement
of any Services pursuant to this Agreement:
10.1 Coverage and Limits
(a) Commercial General Liability:
$1,000,000- Each Occurrence
$2,000,000- Aggregate
(b) Automobile Liability:
$1,000,000- Each occurrence on a combined single limit basis
Coverage will be on any vehicle used by Vendor, or its employees, agents, or
representatives in the course of providing Services under this Agreement. "Any
vehicle"will be any vehicle owned,hired and non-owned.
(c) Worker's Compensation:
Statutory limits according to the Texas Workers' Compensation Act or any other
state workers' compensation laws where the Services are being performed
Employers' liability
$100,000- Bodily Injury by accident;each accident/occurrence
$100,000 - Bodily Injury by disease; each employee
$500,000- Bodily Injury by disease;policy limit
(d) Professional Liability(Errors&Omissions):
$1,000,000- Each Claim Limit
$1,000,000- Aggregate Limit
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Professional Liability coverage may be provided through an endorsement to the
Commercial General Liability (CGL) policy, or a separate policy specific to
Professional E&O. Either is acceptable if coverage meets all other requirements.
Coverage must be claims-made,and maintained for the duration of the contractual
agreement and for two (2) years following completion of services provided. An
annual certificate of insurance must be submitted to City to evidence coverage.
10.2 General Requirements
(a) The commercial general liability and automobile liability policies must
include City as an additional insured thereon,as its interests may appear. The term
City includes its employees,officers,officials,agents,and volunteers in respect to
the contracted services.
(b) The workers' compensation policy must include a Waiver of Subrogation
(Right of Recovery)in favor of City.
(c) A minimum of Thirty (30) days' notice of cancellation or reduction in
limits of coverage must be provided to City. Ten (10) days' notice will be
acceptable in the event of non-payment of premium.Notice must be sent to the
Risk Manager, City of Fort Worth, 200 Texas Street, Fort Worth, Texas 76102,
with copies to the Fort Worth City Attorney at the same address.
(d) The insurers for all policies must be licensed and/or approved to do
business in the State of Texas.All insurers must have a minimum rating of A-VII
in the current A.M.Best Key Rating Guide,or have reasonably equivalent financial
strength and solvency to the satisfaction of Risk Management. If the rating is
below that required,written approval of Risk Management is required.
(e) Any failure on the part of City to request required insurance
documentation will not constitute a waiver of the insurance requirement.
(f) Certificates of Insurance evidencing that Vendor has obtained all required
insurance will be delivered to the City prior to Vendor proceeding with any work
pursuant to this Agreement.
11. Compliance with Laws, Ordinances,Rules and Regulations. Vendor agrees that in the
performance of its obligations hereunder, it will comply with all applicable federal, state and local laws,
ordinances,rules and regulations and that any work it produces in connection with this Agreement will also
comply with all applicable federal, state and local laws, ordinances, rules and regulations. If City notifies
Vendor of any violation of such laws, ordinances, rules or regulations, Vendor must immediately desist
from and correct the violation.
12. Non-Discrimination Covenant. Vendor, for itself, its personal representatives, assigns,
contractors,subcontractors,and successors in interest,as part of the consideration herein,agrees that in the
performance of Vendor's duties and obligations hereunder, it will not discriminate in the treatment or
employment of any individual or group of individuals on any basis prohibited by law. IF ANY CLAIM
ARISES FROM AN ALLEGED VIOLATION OF THIS NON-DISCRIMINATION COVENANT
BY VENDOR, ITS PERSONAL REPRESENTATIVES, ASSIGNS, CONTRACTORS,
SUBCONTRACTORS, OR SUCCESSORS IN INTEREST, VENDOR AGREES TO ASSUME
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SUCH LIABILITY AND TO INDEMNIFY AND DEFEND CITY AND HOLD CITY HARMLESS
FROM SUCH CLAIM.
13. Notices. Notices required pursuant to the provisions of this Agreement will be
conclusively determined to have been delivered when (1) hand-delivered to the other party, its agents,
employees, servants or representatives, (2) delivered by facsimile with electronic confirmation of the
transmission,or(3)received by the other party by United States Mail,registered,return receipt requested,
addressed as follows:
To CITY: To VENDOR:
City of Fort Worth Kroll,LLC.
Attn: Assistant City Manager Attn: General Counsel55 E 52nd St,New York,
200 Texas Street New York 10055, United StatesFacsimile:
Fort Worth,TX 76102-6314
Facsimile: (817)392-8654
With copy to Fort Worth City Attorney's Office at
same address
14. Solicitation of Employees. Neither City nor Vendor will, during the term of this
Agreement and additionally for a period of one year after its termination,solicit for employment or employ,
whether as employee or independent contractor, any person who is or has been employed by the other
during the term of this Agreement, without the prior written consent of the person's employer.
Notwithstanding the foregoing,this provision will not apply to an employee of either party who responds
to a general solicitation of advertisement of employment by either party.
15. Governmental Powers. It is understood and agreed that by execution of this Agreement,
City does not waive or surrender any of its governmental powers or immunities.
16. No Waiver. The failure of City or Vendor to insist upon the performance of any term or
provision of this Agreement or to exercise any right granted herein does not constitute a waiver of City's or
Vendor's respective right to insist upon appropriate performance or to assert any such right on any future
occasion.
17. Governine Law/Venue. This Agreement will be construed in accordance with the laws
of the State of Texas. If any action,whether real or asserted,at law or in equity,is brought pursuant to this
Agreement, venue for such action will lie in state courts located in Tarrant County, Texas or the United
States District Court for the Northern District of Texas,Fort Worth Division.
18. Severability. If any provision of this Agreement is held to be invalid, illegal or
unenforceable,the validity, legality and enforceability of the remaining provisions will not in any way be
affected or impaired.
19. Force Maieure. City and Vendor will exercise their best efforts to meet their respective
duties and obligations as set forth in this Agreement,but will not be held liable for any delay or omission
in performance due to force majeure or other causes beyond their reasonable control, including, but not
limited to, compliance with any government law, ordinance, or regulation; acts of God; acts of the public
enemy; fires; strikes; lockouts; natural disasters; wars; riots; epidemics or pandemics; government action
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or inaction; orders of government; material or labor restrictions by any governmental authority;
transportation problems;restraints or prohibitions by any court,board,department,commission,or agency
of the United States or of any States;civil disturbances;other national or regional emergencies;or any other
similar cause not enumerated herein but which is beyond the reasonable control of the Party whose
performance is affected (collectively, "Force Majeure Event"). The performance of any such obligation is
suspended during the period of, and only to the extent of, such prevention or hindrance, provided the
affected Party provides notice of the Force Majeure Event, and an explanation as to how it prevents or
hinders the Party's performance,as soon as reasonably possible after the occurrence of the Force Majeure
Event,with the reasonableness of such notice to be determined by the City in its sole discretion.The notice
required by this section must be addressed and delivered in accordance with Section 13 of this Agreement.
20. Headings not Controlling. Headings and titles used in this Agreement are for reference
purposes only,will not be deemed a part of this Agreement,and are not intended to define or limit the scope
of any provision of this Agreement.
21. Review of Counsel. The parties acknowledge that each party and its counsel have
reviewed and revised this Agreement and that the normal rules of construction to the effect that any
ambiguities are to be resolved against the drafting party will not be employed in the interpretation of this
Agreement or Exhibits A,B,and C.
22. Amendments/Modifications/Extensions. No amendment,modification, or extension
of this Agreement will be binding upon a party hereto unless set forth in a written instrument, which is
executed by an authorized representative of each party.
23. Counterparts. This Agreement may be executed in one or more counterparts and each
counterpart will, for all purposes,be deemed an original,but all such counterparts will together constitute
one and the same instrument.
24. Warranty of Services. Vendor warrants that its services will be of a high quality and
conform to generally prevailing industry standards as specified in Exhibit A. City must give written notice
of any breach of this warranty within thirty(30)days from the date that the services are completed.In such
event, at Vendor's option, Vendor will either (a) use commercially reasonable efforts to re-perform the
services in a manner that conforms with the warranty,or(b)refund the fees paid by City to Vendor for the
nonconforming services.
25. Immigration Nationality Act. Vendor must verify the identity and employment eligibility
of its employees who perform work under this Agreement, including completing the Employment
Eligibility Verification Form (I-9). Upon request by City,Vendor will provide City with copies of all I-9
forms and supporting eligibility documentation for each employee who performs work under this
Agreement. Vendor must adhere to all Federal and State laws as well as establish appropriate procedures
and controls so that no services will be performed by any Vendor employee who is not legally eligible to
perform such services.VENDOR WILL INDEMNIFY CITY AND HOLD CITY HARMLESS FROM
ANY PENALTIES,LIABILITIES, OR LOSSES DUE TO VIOLATIONS OF THIS PARAGRAPH
BY VENDOR, VENDOR'S EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, OR
AGENTS.City,upon written notice to Vendor,will have the right to immediately terminate this Agreement
for violations of this provision by Vendor.
26. Ownership of Work Product. Upon payment in full,City will be the sole and exclusive
owner of all final reports, produced in conjunction with the services provided under this Agreement
(collectively, "Work Product"), excluding Vendor's pre-existing intellectual property (including any
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material created and owned by Vendor(e.g., information,tools, applications, internal proprietary models,
know-how,and methodologies)or acquired by Vendor from any third party sources(e.g.licensed material,
market or database analysis,comparable,public records or similar indexes). Further, City will be the sole
and exclusive owner of all copyright,patent,trademark,trade secret and other proprietary rights in and to
the Work Product excluding Vendor's pre-existing intellectual property. Ownership of the Work Product
will inure to the benefit of City from the date of conception, creation or fixation of the Work Product in a
tangible medium of expression (whichever occurs first). Each copyrightable aspect of the Work Product
will be considered a "work-made-for-hire" within the meaning of the Copyright Act of 1976,as amended.
If and to the extent such Work Product,or any part thereof,is not considered a"work-made-for-hire"within
the meaning of the Copyright Act of 1976, as amended, Vendor hereby expressly assigns to City all
exclusive right, title and interest in and to the Work Product, and all copies thereof, and in and to the
copyright, patent, trademark, trade secret, and all other proprietary rights therein, that City may have or
obtain,without further consideration,free from any claim,lien for balance due,or rights of retention thereto
on the part of City.
27. Signature Authority. The person signing this Agreement hereby warrants that they have
the legal authority to execute this Agreement on behalf of the respective party, and that such binding
authority has been granted by proper order,resolution, ordinance or other authorization of the entity. This
Agreement and any amendment hereto,may be executed by any authorized representative of Vendor. Each
party is fully entitled to rely on these warranties and representations in entering into this Agreement or any
amendment hereto.
28. Change in Company Name or Ownership. Vendor must notify City's Purchasing
Manager, in writing, of a company name, ownership, or address change for the purpose of maintaining
updated City records.The president of Vendor or authorized official must sign the letter.A letter indicating
changes in a company name or ownership must be accompanied with supporting legal documentation such
as an updated W-9, documents filed with the state indicating such change, copy of the board of director's
resolution approving the action, or an executed merger or acquisition agreement. Failure to provide the
specified documentation so may adversely impact future invoice payments.
29. No Bove tt of Israel. If Vendor has fewer than 10 employees or this Agreement is for
less than $100,000, this section does not apply. Vendor acknowledges that in accordance with Chapter
2271 of the Texas Government Code,the City is prohibited from entering into a contract with a company
for goods or services unless the contract contains a written verification from the company that it: (1)does
not boycott Israel;and(2)will not boycott Israel during the term of the contract. The terms"boycott Israel"
and"company"has the meanings ascribed to those terms in Section 2271 of the Texas Government Code.
By signing this Agreement,Vendor certifies that Vendor's signature provides written verification to
the City that Vendor: (1) does not boycott Israel; and (2)will not boycott Israel during the term of
the Agreement.
30. Prohibition on Boycotting Energy Companies.Vendor acknowledges that in accordance
with Chapter 2274 of the Texas Government Code (as added by Acts 2021, 87th Leg., R.S., S.B. 13, § 2),
the City is prohibited from entering into a contract for goods or services that has a value of$100,000 or
more,which will be paid wholly or partly from public funds of the City,with a company(with 10 or more
full-time employees)unless the contract contains a written verification from the company that it: (1) does
not boycott energy companies; and (2) will not boycott energy companies during the term of the
contract.The terms "boycott energy company" and "company"have the meaning ascribed to those terms
by Chapter 2274 of the Texas Government Code(as added by Acts 2021, 87th Leg.,R.S., S.B. 13, § 2). To
the extent that Chapter 2274 of the Government Code is applicable to this Agreement,by signing this
Agreement, Vendor certifies that Vendor's signature provides written verification to the City that
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Vendor: (1)does not boycott energy companies; and(2)will not boycott energy companies during the
term of this Agreement.
31. Prohibition on Discrimination Against Firearm and Ammunition Industries. Vendor
acknowledges that except as otherwise provided by Chapter 2274 of the Texas Government Code(as added
by Acts 2021, 87th Leg.,R.S., S.B. 19, § 1),the City is prohibited from entering into a contract for goods
or services that has a value of$100,000 or more which will be paid wholly or partly from public funds of
the City, with a company (with 10 or more full-time employees) unless the contract contains a written
verification from the company that it: (1) does not have a practice, policy, guidance, or directive that
discriminates against a firearm entity or firearm trade association; and(2)will not discriminate during the
term of the contract against a firearm entity or firearm trade association. The terms"discriminate,""firearm
entity" and "firearm trade association" have the meaning ascribed to those terms by Chapter 2274 of the
Texas Government Code (as added by Acts 2021, 87th Leg., R.S., S.B. 19, § 1). To the extent that
Chapter 2274 of the Government Code is applicable to this Agreement, by signing this Agreement,
Vendor certifies that Vendor's signature provides written verification to the City that Vendor: (1)
does not have a practice, policy,guidance,or directive that discriminates against a firearm entity or
firearm trade association; and (2) will not discriminate against a firearm entity or firearm trade
association during the term of this Agreement.
32. Electronic SiEnatures. This Agreement may be executed by electronic signature, which
will be considered as an original signature for all purposes and have the same force and effect as an original
signature.For these purposes,"electronic signature"means electronically scanned and transmitted versions
(e.g.via pdf file or facsimile transmission)of an original signature,or signatures electronically inserted via
software such as Adobe Sign.
33. Entirety of Agreement. This Agreement contains the entire understanding and agreement
between City and Vendor,their assigns and successors in interest, as to the matters contained herein. Any
prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict
with any provision of this Agreement.
34. Insurance Appraisal Service-Related Terms. Notwithstanding anything to the contrary in the
Agreement,the following terms shall also apply to Vendor's provision of the Services,which are
further outlined in Exhibit "A", and shall supersede any conflicting terms or conditions in the
Agreement:
Limited Use and Reliance —The purpose of this Agreement is to provide City a property
insurance appraisal for City's use in connection with its internal analysis of its insurance needs
with respect to the Identified Property (as defined in Exhibit"A"). Vendor's opinion is intended
to assist City in making informed business decisions; it is not a recommendation. Any decisions
relating to insurance coverage shall remain City's responsibility and be made solely at its
discretion. City is the sole intended user of Vendor's report or other work product. City may
disclose an informational copy of the report or other work product to its audit, tax, legal or
insurance professionals acting in an advisory capacity in connection with the purpose of this
engagement. No third party shall have the right of reliance on the report, and neither receipt nor
possession of the report by any third party shall create any express or implied third-party
beneficiary rights.
Engagement Limits—Vendor's report may only be used for the specific purpose or premise
of value stated in this Agreement and the report. City shall not reference Vendor or its work in
any public filing or other materials distributed to actual or prospective shareholders, investors,
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financing parties,or similar third parties without Vendor's prior written consent.
Information Provided by City—Vendor will not independently verify information provided
by City,its advisors,or third parties acting at City's direction. Vendor will assume and rely on the
accuracy and completeness of all such information.
35. Indemnification — THE VENDOR WILL AND DOES HEREBY AGREE TO INDEMNIFY,
PROTECT, DEFEND WITH COUNSEL APPROVED BY THE CITY (APPROVAL NOT
TO BE UNREASONABLY WITHHELD BY THE CITY), AND HOLD HARMLESS THE
CITY AND THEIR REGENTS, OFFICERS, DIRECTORS, ATTORNEYS, EMPLOYEES,
REPRESENTATIVES AND AGENTS (COLLECTIVELY "INDEMNITEES") FROM AND
AGAINST ALL DAMAGES, LOSSES, LIENS, CAUSES OF ACTION, SUITS,
JUDGMENTS, EXPENSES, AND OTHER CLAIMS OF ANY NATURE, KIND, OR
DESCRIPTION, INCLUDING REASONABLE ATTORNEYS' FEES INCURRED IN
INVESTIGATING, DEFENDING OR SETTLING ANY OF THE FOREGOING
(COLLECTIVELY "CLAIMS") BY ANY PERSON OR ENTITY, ARISING OUT OF, IN
CONNECTION WITH, OR RESULTING FROM THIS AGREEMENT OR THE GOODS
OR SERVICES PROVIDED UNDER THIS AGREEMENT, TO THE EXTENT CAUSED,
IN WHOLE OR IN PART, BY THE ACTS, OMISSIONS, OR WILLFUL MISCONDUCT
OF THE VENDOR, OR IT AGENTS, EMPLOYEES, SUBCONTRACTORS, SUPPLIERS
OR ANYONE DIRECTLY EMPLOYED BY THE VENDOR OR ANYONE FOR WHOSE
ACTS THE VENDOR MAYBE LIABLE. IN ADDITION, THE VENDOR WILL INDEMNIFY,
PROTECT, DEFEND WITH COUNSEL APPROVED BY THE CITY, AND HOLD
HARMLESS THE INDEMNITEES FROM AND AGAINST ALL CLAIMS ARISING FROM
INFRINGEMENT OR ALLEGED INFRINGEMENT OF ANY PATENT, COPYRIGHT,
TRADEMARK OR OTHER INTELLECTUAL PROPERTY RIGHTS ARISING OUT OF, IN
CONNECTION WITH, OR RESULTING FROM THIS AGREEMENT OR THE SERVICES
PROVIDED UNDER THIS AGREEMENT. THE PROVISIONS OF THIS SECTION WILL
NOT BE CONSTRUED TO ELIMINATE OR REDUCE ANY OTHER INDEMNIFICATION
OR RIGHT, WHICH ANY INDEMNITEE HAS, BY LAW OR EQUITY. IN THE EVENT
OF LITIGATION, THE CITY AGREES TO COOPERATE REASONABLY WITH THE
VENDOR. ALL PARTIES WILL BE ENTITLED TO BE REPRESENTED BY COUNSEL
AT THEIR OWN EXPENSE. NOTWITHSTANDING THE FOREGOING, THE VENDOR
AND THE CITY AGREE THAT CONTRACTOR'S MAXIMUM LIABILITY TO THE
INDEMNITEES FOR CLAIMS PURSUANT TO THE FOREGOING INDEMNIFICATION
OBLIGATIONS SHALL NOT EXCEED $500,000 IN THE AGGREGATE.
36. Limitation of Liability. EXCEPT FOR CITIES OBLIGATION (IF ANY) TO PAY CONTRACTOR
CERTAIN FEES AND EXPENSES (INCLUDING WITHOUT LIMITATION SYSTEM'S INDEMNIFICATION
OBLIGATIONS HEREIN, IF ANY) THE CITY WILL HAVE NO LIABILITY TO CONTRACTOR OR TO
ANYONE CLAIMING THROUGH OR UNDER CONTRACTOR BY REASON OF THE EXECUTION OR
PERFORMANCE OF THIS AGREEMENT EXCEPT TO THE EXTENT SUCH CLAIMS OR LIABILITY IS
SOLELY CAUSED BY SYSTEM'S OR COMPONENT INSTITUTION'S GROSS NEGLIGENCE, FRAUD, OR
WILLFUL MISCONDUCT. NOTWITHSTANDING ANY DUTY OR OBLIGATION OF THE CITY TO THE
CONTRACTOR OR TO ANYONE CLAIMING THROUGH OR UNDER CONTRACTOR, NO PRESENT OR
FUTURE AFFILIATED ENTERPRISE, SUBCONTRACTOR, AGENT, OFFICER, DIRECTOR, EMPLOYEE,
REPRESENTATIVE,ATTORNEY OR REGENT OF THE CITY, OR ANYONE CLAIMING UNDER THE CITY
Vendor Services Agreement Page 10 of 15
HAS OR WILL HAVE ANY PERSONAL LIABILITY TO CONTRACTOR OR TO ANYONE CLAIMING
THROUGH OR UNDER CONTRACTOR BY REASON OF THE EXECUTION OR PERFORMANCE OF THIS
AGREEMENT.
UNLESS OTHERWISE PROHIBITED BY LAW OR REGULATION,THE MAXIMUM AMOUNT OF DAMAGES
THE CITY MAY RECEIVE AS A RESULT OF ANY DETERMINATION THAT SOME OR ALL OF THE
SERVICES CONTRACTOR PERFORMED UNDER THIS AGREEMENT, OR FOR BREACH OF
AGREEMENT, NONFEASANCE OR NEGLIGENCE, SHALL BE THREE TIMES THE FEES PAID TO
CONTRACTOR FOR THE DISPUTED SERVICES. THE CITY AND CONTRACTOR AGREE THAT,
BECAUSE OF THE DIFFICULTY OF DETERMINING AND/OR QUANTIFYING DAMAGES FOR BREACH OF
THIS AGREEMENT OR FOR CONTRACTOR'S NEGLIGENCE, SAID AMOUNT SHALL CONSTITUTE
LIQUIDATED DAMAGES FOR ANY CLAIMS SYSTEM MAY ASSERT ARISING FROM OR RELATED TO
THIS AGREEMENT. IN NO EVENT SHALL CONTRACTOR BE LIABLE FOR THE CONSEQUENTIAL,
SPECIAL, INCIDENTAL, OR PUNITIVE LOSS, DAMAGE OR EXPENSE CAUSED TO SYSTEM OR TO ANY
THIRD PARTY(INCLUDING WITHOUT LIMITATION, LOST PROFITS, OPPORTUNITY COSTS).
Environmental Policy — Vendor will not investigate, nor assume responsibility for, the
existence or impact of any contamination or hazardous substance related to property or assets
associated with this engagement.
Vendor Services Agreement Page 11 of 15
IN WITNESS WHEREOF,the parties hereto have executed this Agreement in multiples.
CITY OF FORT WORTH:
CONTRACT COMPLIANCE MANAGER:
By signing I acknowledge that I am the person
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By: responsible for the monitoring and administration of
Jesus J.Chapa v 4, 2116:22 CDT) this contract,including ensuring all performance and
Name: Jay J.Chapa reporting requirements.
Title: Assistant City Manager
Date: Nov 4, 2021 ' � /
OL-
By: i`i � . �Gi1
Name: Mark J. Bar
APPROVAL RECOMMENDED: Title: Assistant Director Human Resources
APPROVED AS TO FORM AND LEGALITY:
By:
Name: Mark J. Bart
Title: Assistant Director Human Resources By: J trong(Nov 4,202116:2 T)
Name: John Strong
ATTEST: Title: Assistant City Attorney
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By. RonaldP Gonzales, cling City Secre ary(Nov 5,2 10727 DT) /.0 00%�j
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Name: Mary J.Kayser �t�g o=d
Title: City Secretary �p�,�000 0000*�d
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VENDOR:
KROLL, LLC
By:
Name: Michael Domin
Title: Managing Director
Date: October 26,2021
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
Vendor Services Agreement Page 12 of 15
City Secretary Contract No.
EXHIBIT A
SCOPE OF SERVICES
Purpose of the Services
The purpose of these services is to provide the City of Ft. Worth (COFW) a property insurance appraisal
for COFW's use in connection with its internal analysis of its insurance needs with respect to the
identified property. For each identified property, our analysis will be dated as of the last day of our site
inspection. Our opinion is intended to assist COFW in making informed business decisions; it is not a
recommendation. Any decisions relating to insurance coverage shall remain COFW's responsibility and
be made solely at its discretion.
Definition of Insurable Value
We will develop our opinion of insurable value as cost of reproduction new ("CRN"), defined as the
estimated amount required to reproduce a duplicate or a replica of the entire property at one time, in
like kind and materials, in accordance with current market prices for materials, labor, and manufactured
equipment; contractors' overhead and profit; and fees, but without provision for overtime, bonuses for
labor, or premiums for material or equipment. CRN, as defined, is synonymous with the insurance-
industry term "replacement cost new."
In estimating insurable value, we will allow for national building codes; however, we will not consider
any construction codes imposed by state or local municipalities, ordinances, or other legal restrictions,
nor will we consider the cost of demolition in connection with reconstruction or the cost of removal of
destroyed property.
Valuation Methodology
Our appraisal will rely solely on the cost approach because the market and income approaches are not
applicable for the purpose of this engagement.
Scope of Work
We anticipate this engagement will include the following:
Buildings/Structures
We will utilize a full-scope segregated cost approach including an inspection of each building to identify
construction data that will be used in the valuation process. During inspection of the premises, we will
calculate each building's area and perimeter by measuring the structure or through an analysis of the
as-built blueprints; identify and record data of the major construction components (type of structure,
walls, roof, etc.); determine the construction class; record data of major service systems (electrical,
plumbing, security, elevators, heating, ventilation, cooling, etc.); photograph the building; and record
the GPS coordinates. The insurable value of each building and the related construction, occupancy,
protection, and exposure data obtained during the inspection will be reported on an itemized basis.
Personal Property
We will develop an opinion of the insurable value of personal property through use of a modeling
approach, which relies on our proprietary database containing data from thousands of detailed
equipment inventories we have performed. The model develops the insurable value of each building's
personal property on the basis of building occupancy and square footage. The model can be altered to
Vendor Services Agreement Page 13 of 15
account for above- or below- average density of personal property. A single insurable value will be
reported for each building's personal property.
Appraisal Reports - Deliverables
Our reports that are issued at the conclusion of our projects are prepared in accordance with the Uniform
Standards of Professional Appraisal Practice. The summary appraisal report represents a summary
discussion of the data, reasoning, and analyses used in the appraisal process to develop Duff& Phelps'
opinion of value. Supporting exhibits include building details, photographs and the related construction,
occupancy, protection, and exposure (COPE) data.
The City will receive a full complement of reports as listed below with pdf file and excel file. Please see
Exhibit A for a listing of sample reports.
• Summary Appraisal Report — Narrative report intended to comply with the reporting
requirements set forth by the Uniform Standards of Professional Appraisal Practice
("USPAP")for a Summary Appraisal Report. As such,the report will present only summary
discussions of the data, reasoning, and analyses used in the appraisal process to develop
Duff&Phelps'opinion of value. Supporting documentation concerning the data, reasoning,
and analyses will be retained as a part of our work papers. The depth of discussion
contained in the report will be specific to your needs as the client and for the intended use
stated below. Duff& Phelps is not responsible for unauthorized use of its report.
• Statement of Insurable Values Exhibit—Displays description of fields being summarized,
and cost of reproduction new by location.
• Inspection and Appraisal Exhibit— Represents a listing of building Construction
Occupancy, Protection and Exposure (COPE) data, fixed equipment details, and photographs
for each property. The following information will be provided for each building, Site & Building
Designation, Address, Year Built, ISO Classification, Square Feet, Story Height, Number of
Floors, Wall Type, Roof Pitch, Heating, Cooling, Entry Alarm, Fire Alarm, Replacement Cost
Value, Additional Features, and GPS coordinates.
City Secretary Contract No.
EXHIBIT B
PAYMENT SCHEDULE
The fee is $99,500, including expenses, and will be invoiced as follows:
• Per quarter billing as time is charged and expenses are incurred
This fee includes issuing the deliverables below and responding to customary questions from the City
and its insurance brokers or advisors.
Vendor Services Agreement Page 15 of 15