HomeMy WebLinkAboutContract 30145 CITY SECRETARY
CONTRACT NO.
BROKER CONTRACT
STATE OF TEXAS §
COUNTY OF TARRANT §
WHEREAS, Section 252.024, Texas Local Government Code, allows the City of Fort Worth to
select, without competitive bidding, "a licensed insurance broker as the sole broker of record to obtain
proposals and coverages for excess or surplus insurance that provides necessary coverage and adequate
limits of coverage in structuring layered excess coverages in all areas of risk requiring special
consideration;"and
WHEREAS, McGriff, Seibels &Williams of Texas, Inc. is a licensed insurance broker operating
its business in Texas.
NOW, THEREFORE, the City of Fort Worth and McGriff, Seibels & Williams of Texas, Inc. do
hereby enter into the following agreement.
This Contract is made and entered into by and between the CITY OF FT.WORTH (hereinafter
referred to as "CITY"), a Texas municipal corporation, acting by and through Charles Boswell, its duly
authorized Assistant City Manager, and McGriff, Seibels &Williams of Texas, Inc. (hereinafter referred to
as"Broker"),acting by and through its Vice President,Johnny Fontenot, who is duly authorized to act.
In consideration of the mutual covenants and provisions contained herein, and other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree, and
by the execution hereof are bound, to the mutual obligations herein contained and to the performance of the
tasks hereinafter described.
I. SCOPE OF SERVICES
BROKER agrees to provide the following services:
1.1 BROKER shall work closely with CITY to develop bid requests to secure excess insurance for
the CITY's insurable risks. The objective is to place Excess Insurance programs over CITY's
self-insurance program in accordance with the desired retentions and limits to be designed by the
CITY. BROKER shall make available to CITY all resources at its disposal to properly collect,
organize and review all data placed into the bid request.
1.2 BROKER shall market CITY account to qualified excess workers' compensation and liability
insurance companies. Marketing shall include,but not be limited to, assisting in the development
of insurance specifications and underwriting criteria, assisting in developing Requests For Quotes
from insurance companies, canvassing insurance markets, reviewing suitable manuscript policies,
negotiations on behalf of CITY, 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.
1.3 BROKER shall represent CITY in all phases of obtaining excess insurance. Direct negotiations
with the insurance company will take place with the direction of CITY. Placement of any
program of insurance will be conducted as a bid directly to insurance market underwriters.
BROKER shall review bids and assist CITY in the selection thereof.
1.4 It is clearly understood that any resulting product from the Broker of Reco
accepted nor bound until approved by CITY's City Council. All procure ni of'*>bs�nce shall;'
be conducted in accordance with the Texas Local Government Code and all a pplicabre Taw.
1.5 BROKER shall continue to act in an advisory and consulting role to CITY for the duration of the
BROKER's Contract to ensure that the insurance program accepted by CITY continues to work
smoothly and effectively. BROKER may also be required to assist CITY in evaluating proposals
from potential contractors for programs such as Third Party Administrator and Medical Cost
Containment.
1.6 BROKER shall arrange for and coordinate an annual Claims Audit of the CITY's Third Party
Administrator and the CITY's Medical Cost Containment Contractor. Final reports resulting from
these audits shall be provided to the CITY's Occupational Health Manager.
1.7 BROKER shall arrange for Loss Prevention and Safety Audit Services upon written authorization
by CITY'S Occupational Health Manager. 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 one hundred(100) hours of
these services.
1.8 BROKER shall be available to serve in a consulting capacity to CITY on insurance or BROKER
related issues on such projects CITY may request, including, but not limited to identify markets
for specialty coverage's for vendors or contractors doing business with CITY; reviewing
contractual/lease provisions; helping CITY assess financial strength of insurance companies, risk
retention and purchasing groups, captive insurers, and other non-traditional insurance
mechanisms; loss settlement negotiation with primary or excess insurers if needed; attend
meetings with CITY Staff or City Council as requested; reviewing new laws; assisting in
reviewing claims as needed; answering loss control questions;and reviewing actuarial reports.
2 TERM AND RENEWAL
2.1 The term of the Contract shall be for a period of three (3) years January 1, 2003 and ending
December 31, 2005, unless renewal and extension or earlier termination occurs pursuant to any
other provision contained in this Contract.
2.2 This Contract may be renewed and extended beyond the date stated above, under the same terms
and conditions, subject to the mutual agreement of the parties for two (2) additional one (1) year
periods. Should the parties agree to renew this Contract, the parties shall execute an agreement in
writing establishing such mutual assent and the renewed and extended term.
2.3 This contract provides a three (3) year rate guarantee at .07720 per $100 of payroll. Premium
increases only based on payroll increase.
3 LICENSES AND CERTIFICATIONS
3.1 BROKER warrants and certifies that BROKER and any other person designated to provide
services hereunder has the requisite training, license and/or certification to provide said service.
4 PAYMENT FOR SERVICES
4.1 The total of all payments and obligations made and incurred by CITY hereunder, in consideration for
services rendered by BROKER, shall not exceed the amount of TEN THOUSAND and no cents
($10,000.00)as a Broker Fee in addition to the Excess Workers' Compensation policy premium.
4.2 BROKER agrees that all BROKER labor, supervision of work, report or document reproduction,
typing, travel, insurance, communication, computer access, materials, supplies, subcontractor cost,
if any, and all other BROKER expenses necessary to complete the services stated in this Contract
shall be included in the cost stated in subsection 4.1
4.3 Payments t o B ROKER s hall b e i n t he a mount sh own b y t he b illings a nd o er d•ocumentation
submitted in accordance with subsection 4.2 and shall be subject to CITY's ap oval. All services ' J
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shall be performed to CITY's satisfaction, and CITY shall not be liable for any payment under
this Contract for services which are unsatisfactory or which CITY has not approved.
4.4 CITY shall not be obligated or liable under this Contract to any party other than BROKER for
payment of any monies or provision of any goods or services.
V. AMENDMENT
5.1 This Contract,together with its authorizing ordinance and exhibits,if any,shall constitute the full
and final agreement between the parties hereto.
5.2 Except where the terms of this Contract provide otherwise, any amendment to this Contract shall
not be binding on the parties unless such amendment be in writing, executed by both CITY and
BROKER.
5.3 It is understood and agreed by the parties hereto, that changes in local, state and federal rules,
regulations or laws applicable hereto may occur during the term of this Contract and that any such
changes shall be automatically incorporated into this Contract without written amendment hereto,
and shall become a part hereof as of the effective date of the rule,regulation or law.
VI. CONFIDENTIALITY
6.1 No reports, information, project evaluation, project designs, data or any other documentation
developed by, given to, prepared by, or assembled by BROKER under this Contract shall be
disclosed or made available to any individual or organization by BROKER without the express
prior written approval of CITY. In the event BROKER receives any such request, BROKER
shall forward such request to CITY immediately.
6.2 BROKER shall establish a method to secure the confidentiality of records and information that
BROKER may have access to in accordance with the applicable federal, state, and local laws,
rules and regulations. This provision shall not be construed as limiting CITY's right of access to
records or other information under this Contract.
VII. OWNERSHIP OF DOCUMENTS
7.1 All r eports,i nformation a nd other d ata p rovided b y,p repared o r a ssembled b y o r o n behalf o f
BROKER under this Contract, in whatsoever form and character produced, shall become the sole
property of CITY without restriction on future use.
7.2 All such reports, information or data shall be delivered to CITY upon termination or expiration of
this Contract, at BROKER's sole cost and expense.
7.3 No such report, information nor data shall be the subject of any copyright or proprietary claim by
BROKER.
VIII. SUBCONTRACTING
8.1 Any work or services subcontracted by BROKER shall be by written contract, and unless specific
waiver is granted in writing by CITY, shall be subject by its terms to each and every provision of
this Contract. Compliance by subcontractor with the provisions of said contract shall be the
responsibility of CONTRACTOR.
8.2 CITY shall in no event be obligated to any third party, including and subcontractor of
CONTRACTOR, for performance of services or payment of fees.
8.3 BROKER will subcontract a portion of account service and claims reporting t its MINORITY'U"J
PARTNER, Tricon Insurance Services,Inc. for fifteen percent(15%)of BRO R's annual fee.
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8.4 In accord with City of Fort Worth Ordinance No. 15530,as it may be amended from time to time,the
CITY has goals for the participation of minority business enterprises and woman business enterprises
in City contracts. BROKER acknowledges the M/WBE goal established for this contract and its
commitment to meet that goal. Any misrepresentation of facts (other than a negligent
misrepresentation)and/or the commission of fraud by the BROKER may result in the termination of
this agreement and debarment from participating in City contracts for a period of time of not less than
three(3)years.
IX. INSURANCE
9.1 Prior to the commencement of any work by BROKER under this Contract, BROKER shall
furnish an original completed Certificate(s) of Insurance form to CITY's Risk Management
Division and Office of the City Secretary,which shall be completed by an agent authorized to bind
the named underwriter(s) and their company to the coverage, limits, and termination provisions
shown thereon, and which shall furnish and contain all required information referenced or
indicated t hereon. T he o riginal c ertificate(s)o r f orm must have t he a gent's o riginal signature,
including the signer's company affiliation,title and phone number,and be mailed directly from the
agent to CITY. CITY shall have no duty to pay or perform under this Contract until such
certificate or form is delivered to the Occupational Health and Safety Division and the City
Clerk's Office and no officer or employee shall have authority to waive this requirement.
9.2 CITY reserves the right to review the insurance requirements of this section during the effective
period of the Contract and any extension or renewal hereof and to modify insurance coverage and
their limits when deemed necessary and prudent by CITY's Risk Manager based upon changes in
statutory law, court decisions, or circumstances surrounding this Contract, but in no instance will
CITY allow modification whereupon the CITY may incur increased risk.
9.3 BROKER's financial integrity is of interest to CITY, therefore, subject to BROKER's right to
maintain reasonable deductibles in such amounts as are approved by CITY, BROKER shall
obtain and maintain in full force and effect for the duration of this Contract, and any extension
hereof, at BROKER's sole expense, insurance coverage written on an occurrence basis, by
companies authorized and admitted to do business in the State of Texas and rated A- or better by
A.M.Best Company and/or otherwise acceptable to CITY, in the following types and amounts:
TYPE AMOUNT
9.3.1 Workers' Compensation Statutory
Employers' Liability $500,000/$500,000/$500,000
9.3.2 Commercial General(public)Liability
Insurance to include coverage for the following:
a. Premise/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 or its equivalent with a
$2,000,000 Aggregate.
9.3.3 Business 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
occurrenc --^
with a$2, 06,006 aggr4:
9.3.4 Insurance Agents and Brokers $1,000,000 per occurrence
Errors and Omissions Insurance (Claims made form)
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9.4 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 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 CITY,
BROKER shall exercise reasonable efforts to accomplish such changes in policy coverage and
shall pay the cost thereof.
9.5 BROKER agrees that with respect to the above-required insurance, all insurance contracts and
Certificate(s)of Insurance will contain the following required provisions:
• Name CITY and its officers, employees, agents, volunteers and elected representatives as
additional insureds 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 errors and omissions policies;
• BROKER's insurance shall be deemed primary with respect to any insurance or self
insurance carried by the CITY for liability arising out of operations under the contract with
the CITY;
• Workers' Compensation and employers' liability policy will provide a waiver of subrogation
in favor of the CITY.
9.6 BROKER shall notify CITY in the event of any notice of cancellation, non-renewal or material
change in coverage and shall give such notices not less than thirty(30)days prior to the 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 CITY at the
following address:
9.7 If BROKER fails to maintain the aforementioned insurance, or fails to secure and maintain the
aforementioned endorsements, 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 CITY is an alternative to other remedies 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 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,C ITY shall have the right to order BROKER to stop work hereunder,and/or
withhold any payment(s) which become due, to BROKER hereunder until BROKER
demonstrates compliance with the requirements hereof.
9.8 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 Contract.
X. INDEMNITY
10.1 BROKER covenants and agrees to FULLY INDEMNIFY, DEFEND and HOLD
HARMLESS, CITY and the elected officials, employees, officers, directors, volunteers and
representatives of CITY,individually or collectively,from and against any and all costs,
claims, liens, damages, losses, expenses, fees, fines, penalties, proceedings, actions, demands,
causes o f a ction,l iability a nd s uits o f a ny k ind a nd n ature,i ncluding b ut n of 1 imited t o,
personal or bodily injury or death and property damage, made upon 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, BROKER or subcontractor of BROKEIar and their res
officers, agents, employees, directors and representatives while I ?tihe exercfse ''dt'
performance of the rights or duties under this Contract, all without however, waiving any
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governmental immunity available to 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 CITY in writing of any claim or demand
against CITY or BROKER known to BROKER related to or arising out o f B ROKER's
activities under this CONTRACT and shall see to the investigation and defense of such claim
or d emand a t B ROKER's cost. C ITY shall h ave t he r ight,a t i is o ption a nd a t i is o wn
expense, to participate in such defense without relieving BROKER of any of its obligations
under this paragraph.
10.2 It is the EXPRESS INTENT of the parties to this Contract, that the INDEMNITY provided
for in this section (Section 10) is an INDEMNITY extended by BROKER to INDEMNIFY,
PROTECT and HOLD HARMLESS CITY from the consequences of CITY's OWN
NEGLIGENCE, provided however, that the INDEMNITY provided for in this section
SHALL APPLY only when the NEGLIGENT ACT of CITY is a CONTRIBUTORY CAUSE
of the resultant injury, death, or damage, and shall have no application when the negligent
act of 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 CITY, any claim or litigation brought against the CITY and its elected
officials, employees, officers, directors, volunteers and representatives, in connection with
any s uch i njury,d eath,o r d amage f or w hich t his INDEMNITY s hall a pply, a s set f orth
above.
XI. INDEPENDENT CONTRACTOR
11.1 It is expressly understood and agreed by the parties hereto that BROKER provides services under
this Contract as an independent contractor, responsible for its respective acts or omissions, and
that CITY shall in no way be responsible therefor. Neither party hereto has authority to bind the
other or to hold out to third parties that it has authority to bind the other.
XII. COMPLIANCE
12.1 BROKER shall provide and perform all services under this Contract in compliance with all
applicable federal, state, and local laws,rules and regulations.
XIII. TERMINATION
13.1 For purposes of this Contract, "termination"of this Contract shall mean termination by expiration
of the Contract term or earlier termination pursuant to any of the provisions thereof.
13.2 Termination Without Cause: Either party may terminate this Contract by providing written
notice to the other party, specifying the effective date of termination, which shall not be less than
sixty(60) days from the date such notice is received. Such notice shall be given in accordance
with Section XVIII.
13.3 Termination For Cause: In addition to any other provision of this Contract, CITY may
terminate this Contract for any of the following:
13.3.1 Neglect or failure by BROKER to perform or observe any of the terms, conditions,
covenants or guarantees of this Contract or of any amendment between CITY and
BROKER; or
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13.3.2 Violation by BROKER of any law, rule, or regulation to which BROKER is bound or
shall be bound under the terms of this Contract.
13.4 Upon a decision to terminate by CITY, written notice of such shall be immediately provided to
BROKER specifying the effective date oft erniination and the extent tow hich performance of
work under this Contract will be terminated.
13.5 Upon request of notice to terminate, all finished or unfinished documents, data, studies, surveys,
charts, plans, schedules, or other appended documentation,prepared by or on behalf of BROKER
under this Contract shall become the property of CITY and shall, if requested by CITY, be
delivered by BROKER to CITY in a timely and expeditious manner, at BROKER's sole cost
and expense.
13.6 Within thirty (30) days of the effective date of termination (unless an extension is authorized in
writing by CITY), BROKER shall submit to CITY its claim, in detail, for the monies owed by
CITY for services performed under this Contract up to the date of termination; , provided
however,that such payment does not exceed the maximum amount set out in Section V.hereof.
XIV. CONFLICT OF INTEREST
14.1 BROKER warrants and certifies, and this Contract is made in reliance thereon, that it, its
individual officers, employees and agents are neither officers nor employees of CITY or any
CITY agencies,such as City-owned utilities.
XV. NOTICE
15.1 Any notice required, permitted or appropriate under this Contract shall be deemed sufficient if in
writing and sent certified mail,return receipt requested,postage prepaid,to CITY or BROKER at
the respective address set forth below, or to any other address of which written notice of changes
is given:
If to CITY If to BROKER
City of Ft.Worth McGriff, Seibels and Williams of TX,Inc.
5949 Sherry Lane Suite 1300
Dallas,TX 75225
XVI. CAPTIONS
16.1 The captions contained in this Contract are for convenience of reference only and shall in no way
limit or enlarge the terms and conditions of this Contract.
XVII. SUCCESSORS AND ASSIGNS
17.1 This Contract shall be binding upon the inure to the benefit of the parties hereto and their
respective heirs, executors, administrators, successors and their assigns, however, BROKER may
not assign this Contract without prior written consent of CITY in accordance with Section XVIII.
XVIII. VENUE AND GOVERNING LAW
18.1 Venue for any legal action, claim or dispute arising directly or indirectly as a result of this
Contract shall be in Tarrant County, Texas. This Contract is made and is to be performed in
Tarrant County,Texas, and is governed by the laws of the State of Texas.
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XIX. AUTHORITY
19.1 The signer of this Contract for BROKER represents and warrants that he has full legal authority
to execute this Contract on behalf of BROKER and to bind BROKER to the terms and conditions
contained herein.
XX. SEVERABILITY
20.1 If any clause or provision of this Contract is held invalid, illegal or unenforceable under present or
future laws during the term of this Contract, including any extension and renewal hereof, it is the
intention of the parties hereto that the remainder of the Contract shall not be affected hereby, and
that in lieu of each clause or provision of this Contract, a clause or provision as similar in terms to
such illegal, invalid or unenforceable clause or provision as may be possible.
XXI. ENTIRE AGREEMENT
21.1 This Contract, together with its authorizing ordinance and exhibits, if any, embodies the final and
entire agreement of the parties hereto, superseding all oral or written previous and contemporary
agreements between the parties and relating to matters in this Contract. No other agreements, oral
or otherwise regarding the matters of this Contract shall be deemed to exist or to bind the parties
unless same is executed in accordance with Section VI.
EXECUTED this the-7::�'�day of 1 , 2004.
CITY OF FT. WORTH,TEXAS BROKER
MCGRIFF, SEIBELS &WILLIAMS
OF TEXAS,INC.
Charles Boswell Poiiany Font6not
Assistant City Manager Vice President.
APPROVED AS TO FORM: ATTEST:
Assistant City Attorney
City Seeietary
Contract Author za�ioa-�
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Brokerage Service Agreement
THIS BROKERAGE SERVICE AGREEMENT(this"Agreement") is between MCGRIFF,
SEIBELS &WILLIAMS ("MSW") and the City of Fort Worth(the "Client"). This is an
extension of the existing City Contract No. 30145.
The Client and MSW agree as follows:
1. MSW will solicit,negotiate and service insurance policies for the Client for the coverages
described on Exhibit A hereto(Insurance Placement) and provide the risk management
services described on Exhibit B hereto(Risk Management Services).
2. The Client will provide MSW with all information necessary to enable MSW to provide
Insurance Placement and Risk Management Services.
3. Remuneration:
A. The Client will pay MSW a fee in the amount of$25,000.00 (the "Fee") for
Insurance Placement and Risk Management Services.
B. The Fee will be payable upon receipt of an invoice by the Client.
4. With respect to Insurance Placements and/or Risk Management Services undertaken on
behalf of the Client that are not contemplated by this Agreement, MSW may be
compensated pursuant to a separate Broker Service Agreement or by the insurance
companies and/or intermediaries utilized in such Insurance Placements. MSW will make
information regarding such Agreements and compensation available to the Client upon
request.
CONCENTRA
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5. MSW reserves the right to engage business partners and service providers owned by, or
under the control of, MSW or BB&T Corporation in connection with the execution of
Brokerage Services Agreements. Use of these business partners and service providers,
including but not limited to CRC, Prime Rate and BB&T Assurance, could result in the
accrual of additional income to BB&T Corporation.
6. This Agreement and the respective rights and obligations of the parties hereto shall be
construed in accordance with and governed by the laws of the state of Texas.
7. This Agreement commences on 1-1-06 and ends on 1-1-07, unless terminated prior to
that date by either party hereto on 30 days' notice to the other party.
IN WITNESS WHEREOF, the Client and MSW have executed this Agreement.
MCGRIF EIBE & WILLIAMS, INC. CITY OF FORT WO ZTH
By: By: aa
Name: Name: (`"c-harcj 2ua lo.
Title: Title: Pwr,u,
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EXHIBIT A
The Client has requested Insurance Placement for the following lines of coverage:
Excess Commercial General Liability Coverage
Excess Worker's Compensation Coverage
MSW will negotiate the pricing and terms of the coverages with selected insurance companies
and/or intermediaries. At the end of the marketing process and upon the Client's request,MSW
will provide the Client with a report summarizing the results of such negotiations.
In connection with the coverages listed above,MSW will provide the following services during
the term of this Agreement:
a. Confirmation of evidence of insurance(binders, cover notes) or the status of a
placement will be provided and delivered to Client prior to the renewal date;
b. Arrangement of periodic meetings with Client at mutually agreed upon times to
discuss pertinent topics;
c. Timely issuance of certificates of insurance.
d. Provision of claim status reports upon reasonable request;
e. Provision of loss runs upon reasonable request; and
f. Check insurance policies for accuracy.
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EXHIBIT B
MSW will provide the following Risk Management Services for the Client:
ADMINISTRATION
MSW will advise and consult with the City of Fort Worth to ensure our program works
efficiently.
Administration Services will include but not be limited to:
Issuing cover notes/binders;
Working with carriers to maintain policies, including issuance of endorsements, renewals, etc.;
Reconciling accounting and billing transactions;
Preparing Schedules of Insurance and provide Executive Summaries;
SERVICES
MSW shall provide consultation services for the City of Fort Worth in developing bid
requests to secure Workers' Compensation Preferred Provider Network. Services from
MSW shall include assistance in developing Requests for Quotes in accordance with City's
process through the Purchasing Department,reviewing bid quotes and making a
recommendation to the City. The objective is to secure a PPN network that is in compliance
with HB7 certification requirements and allows for breakout services related to the
administration of Workers' Compensation claims.
McGriff, Seibels and Williams of Texas, Inc. has an e-mail network established among our
offices and clients. Our offices are linked via e-mail, offering 24 hours a day, seven days a week
on-line access. Our e-mail is set up directly through the Internet or through Microsoft Exchange,
depending on the circumstances and preferences of the client.
The e-mail system will be enhanced by home phone numbers, beepers and cell numbers
which, will be provided upon McGriff being named the broker for the City of Fort Worth. In
addition to the services provided during the marketing and underwriting process, our account
management and day-to-day service commitment includes,but is not limited to:
Senior account team dedicated to the City of Fort Worth assist in
Preparation of renewal applications;
Attend City Staff or City Council Meetings.
CLAIMS MANAGEMENT
MSW employs a full-time claims management staff supporting all of our offices and dedicated to
handling and monitoring claims on behalf of our clients. This consists of but is not limited to:
Act as liaison between the City of Fort Worth, its claims staff, insurers and/or claims servicing
organization;
Make recommendations on settlement/denials of questionable claims.
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COVERAGE ANALYSIS
On those occasions when insurers issue Reservation of Rights letter on the City of Fort Worth's
claim coverage, policy language will be reviewed by MSW's claims professionals,with reference
to the claim allegation and insurance policy coverage conditions,to determine their propriety and
to advocate the City of Fort Worth's interest.
CLAIM AUDIT SERVICES
MSW will arrange for and coordinate an annual claims audit of the City of Fort Worth's Third
Party Administrator and Medical Cost Containment Contractors. These reports will be provided
at a date to be determined by the City of Fort Worth.
LOSS PREVENTION/SAFETY AUDIT SERVICES
MSW employs a full-time safety and loss control management staff supporting all of our offices
and working on behalf of our clients to offer the following services:
Consultation on Safety Program design and implementation;
Coordination of engineering visitation schedules;
Review/evaluation of insurance carrier recommendations;
Independent field visits to address problem areas;
Business Continuity/Disaster Recovery Planning.
Our proposed City of Fort Worth account team is primarily comprised of local professionals with
experience in Municipality programs. Our risk engineers are well educated in the public entity
industry and aware of the property, environmental, operational, and safety issues that are
associated with municipalities. We are confident that we can provide the experience and
resources to meet the City of Fort Worth's needs.
Senior account team dedicated to the City of Fort Worth;
3 actively involved Senior Account Managers/Executives;
24 hour availability;
Prompt response to all inquires;
Provide updates of market cycles as well as existing market conditions;
Provide insurance estimates for budgeting purposes;
Schedule Quarterly meetings with Risk Manager to discuss loss control issues;
Assist in the analysis and evaluation of:
Contracts (insurance/indemnification provisions);
Policy forms(wordings and endorsements);
Coverage issues;
12-02-2005 Edition 5
Confidential
Provide insurer solvency review and updates;
Provide stewardship report/presentation;
Provide financial risk management and analytical services as needed;
Furnish periodic evaluation of program as requested;
Review of contractor/vendor certificates;
Identify markets for vendors;
Conduct annual renewal strategy meetings, identify market conditions and
marketing plan;
12-02-2005 Edition 6
Confidential
City of Fort Worth, Texas
Mayor and Council Communication
DATE REFERENCE NUMBER LOG NAME PAGE
1/14/03 **C-19410 0002-0278 1 of 2
SUBJECT AWARD OF CONTRACT FOR EXCESS WORKERS' COMPENSATION INSURANCE
TO MCGRIFF, SEIBELS & WILLIAMS OF TEXAS, INC. THROUGH NORTH RIVER
INSURANCE COMPANY FOR THE CITY OF FORT WORTH
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to execute a contract for excess workers' compensation insurance with
McGriff, Seibels & Williams of Texas, Inc. through the North River Insurance Company for an
amount not to exceed $209,395; and
2. Authorize this agreement to begin January 1, 2003, and expire December 31, 2003, with options to
renew for two additional one-year periods.
DISCUSSION:
Proposals were received from two agencies in response to the City's solicitation of proposals for single
incident excess workers' compensation insurance. Staff recommends the contract be awarded to
McGriff, Seibels & Williams of Texas, Inc. to provide excess workers' compensation insurance for the
City through the North River Insurance Company for an estimated annual premium of $199,395, plus
$10,000 for broker fees ($.0077121/$100 payroll).
BID ADVERTISEMENT - This Request for Proposal was advertised in the Commercial Recorder on
October 30 and November 7, 2002. The Purchasing Division solicited 41 vendors from the purchasing
system database and 17 from the Demandstar.com database. Three proposals were received, one of
which was a "no bid".
BID TABULATION -
City Employee
Estimated Retention Liability
Annual Per Per
Proposer Insurer Premium Incident Occurrence
McGriff, Seibels & North River Insurance $209,395 $750,000 $1,000,000
Williams of Texas, Inc. Company
Key& Piskuran Midwest Employers $753,511 $750,000 $1,000,000
Agency Casualty
The City will continue to have a $750,000 retention with a statutory limit of liability under the workers'
compensation laws. Employer's liability limit is $1,000,000.
M/WBE - McGriff, Seibels & Williams, Inc. is in compliance with the City's M/WBE Ordinance by
committing to 15% M/WBE participation. The City's goal on this project is 10%.
City of Fort Worth, Texas
Mayor and Council Communication
DATE REFERENCE NUMBER LOG NAME PAGE
1/14/03 **C-19410 1 0002-0278 2 of 2
SUBJECT AWARD OF CONTRACT FOR EXCESS WORKERS' COMPENSATION INSURANCE
TO MCGRIFF, SEIBELS & WILLIAMS OF TEXAS, INC. THROUGH NORTH RIVER
INSURANCE COMPANY FOR THE CITY OF FORT WORTH
RENEWAL OPTIONS - This agreement may be renewed for up to two successive one-year terms at
the City's option. This action does not require specific City Council approval provided that the City
Council has appropriated sufficient funds to satisfy the City's obligations during the renewal term.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that funds are available in the current operating budget, as appropriated
of the Workers' Compensation Fund.
CB:k
BON/02-0278/DHM
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
Charles Boswell 6183
Originating Department Head:
Jim Keyes 8517 (from) APPROVED 1/14/03
FE73 534610 0147310 $209,395.00
Additional Information Contact:
Robert Combs 8357